From Diploma to Debt: Tracing the Impact of Student Loans on Economic Decisions and Mental Health

Presenter

Ruchi Patel

Campus

UMass Amherst

Sponsor

Kevin L. Young, Department of Economics, UMass Amherst

Schedule

Session 1, 10:30 AM - 11:15 AM [Schedule by Time][Poster Grid for Time/Location]

Location

Poster Board C10, Poster Showcase Room (163), Row 1 (C1-C10) [Poster Location Map]

Abstract

In the United States, the mounting student debt crisis significantly impacts the mental health and economic choices of millions, notably affecting their journey toward homeownership. This study explores how student debt-induced stress influences individuals' decisions and capacity to buy homes. Employing a mixed-methods approach, it integrates data from two surveys—one with psychologically intensive questions and another with broader queries about student debt—aligning this information with the Cooperative Congressional Election Study (CCES) to assess economic, demographic, and psychological factors. Through regression analysis, the research seeks to pinpoint key factors that deter homeownership and elevate stress and anxiety among borrowers. My expectation is to suggest a direct link between escalating student debt and reduced economic prospecting, alongside heightened psychological distress. These findings highlight a critical need for policies aimed at mitigating the negative impacts of student loans on potential homeowners and their mental well-being. This study not only sheds light on the complex dynamics between student debt and housing market participation but also calls for urgent policy interventions to address these challenges. 

Keywords

Student Debt , Homeownership , Mental Health, Economic Impact , Policy Intervention

Research Area

Business & Economics

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