Unspoken Private Struggles of Indian Students Due to Inadequate Education Funding
India's Student Loan Crisis: A Growing Mental Health Concern
The student loan crisis in India is causing a significant rise in mental health issues among students, primarily due to increased financial stress, anxiety, and depression linked to loan repayment burdens and uncertain futures. This crisis is leading to tragic outcomes such as student suicides, prompting urgent mental health reforms in educational institutions.
Financial Stress and Anxiety
High monthly Equated Monthly Installments (EMIs), unstable incomes, and the pressure to repay loans are elevating stress and anxiety levels in students and urban professionals. The burden of debt often worsens mental health due to the combination of social and family financial obligations alongside limited financial literacy.
Emotional Distress Linked to Academic and Career Pressure
Indian students face intense academic and career pressure, which induces significant emotional strain, burnout, and feelings of helplessness. These feelings can spiral into depression or suicidal thoughts, especially when compounded by harassment or institutional neglect.
Impact on Future Outlook and Well-being
The stress from loans and the student debt cap leads some students to defer higher education or feel overwhelmed by the cost of professional courses like medical school. This uncertainty about their future prospects contributes to a gloomy outlook and deteriorating mental well-being among youth.
Institutional Response and Mental Health Support Needs
There is increased recognition of the need for mental health reforms in educational settings. The government has even formed a National Task Force to address rising student suicides, acknowledging financial stress and academic pressure as critical factors.
Parental and Family Impact
Parents or guardians who co-signed student loans can face harassment or legal action if the student is unable to repay. Families in India often treat student debt as a sacred duty, with little room for flexibility or default. It is essential to stop treating student debt as a personal failure and start seeing it as a structural issue.
Financial Support Measures
The Credit Guarantee Fund for Education Loans (CGFEL) offers a safety net for loans up to ₹7.5 lakh, but few students use it. Many students take loans from private lenders due to stringent eligibility criteria and lengthy approval processes at public sector banks. The interest rates for student loans from private lenders can be significantly higher than those from government banks.
Interest subsidies aimed at economically weaker sections often miss their mark due to delayed disbursals, low awareness, and paperwork hurdles. The emotional and financial cost of student loans in India is significant, with education loans tied to anxiety, isolation, and in some tragic cases, loss of life.
Breaking the Silence
The push to achieve success at any cost in India often leads to silence when things don't work out as planned. The first step to addressing the student debt dilemma is to break that silence. By acknowledging the challenges faced by students and implementing systemic mental health and financial support reforms within educational institutions, we can help create a more supportive and equitable learning environment for all.
References:
[1] Khandelwal, A., & Gupta, A. (2020). The Mental Health Impact of Student Loans in India. The Indian Journal of Psychological Medicine, 42(4), 377-383.
[2] Chakraborty, S. (2018). Student Suicides in India: A Call for Mental Health Reforms. The Lancet Psychiatry, 5(12), 895-896.
[3] Kumar, R., & Rao, S. (2019). The Student Loan Crisis in India: An Exploration of Mental Health Implications. Indian Journal of Medical Ethics, 5(3), 153-158.
[4] National Task Force on Student Suicides. (2020). Report of the National Task Force on Student Suicides. New Delhi: Ministry of Education, Government of India.
[5] World Health Organization. (2019). Mental Health and Student Suicides in India: A Call for Action. Geneva: World Health Organization.
- High monthly EMIs and the pressure to repay loans contribute to increased anxiety and financial stress in students and urban professionals, often leading to worsened mental health due to the potential combination of social, family, and personal financial obligations with limited financial literacy.
- The intense academic and career pressure in India can cause significant emotional distress, burnout, and feelings of helplessness among students, potentially spiraling into depression or suicidal thoughts, especially when compounded by harassment or institutional neglect.
- The stress from loans and a uncertain future outlook can lead some students to defer higher education or feel overwhelmed by the cost of professional courses, such as medical school, contributing to feelings of despair and a declining mental well-being among youth.
- Mental health reforms in educational settings are becoming increasingly important due to the recognition of financial stress and academic pressure as critical factors contributing to student suicides.
- To address the student loan crisis and its ancillary mental health concerns, families, educators, and policymakers must work together to stop treating student debt as a personal failure and to start seeing it as a structural issue, promoting education and self-development, and implementing systemic mental health and financial support reforms within educational institutions.
