Unspoken Student Loan Burden Persisting in India's Educational Sphere
In India, the disparity between interest rates offered by government banks and private lenders for education loans is a significant factor for students taking out loans for their education. Many students end up with private lenders due to stringent eligibility criteria and lengthy approval processes at public sector banks, which can be a burden for those already struggling financially.
The emotional and financial cost of student loans in India is growing, affecting not just the borrowers but also their mental health. According to recent statistics, approximately 27% of children and adolescents experience depression, 26% suffer from anxiety disorders, and the student suicide rate is reported at 7.6% of all suicides in India as of 2022, with a 32% increase in student suicides from 2017 to 2022. Over 12% of university students have reported suicidal thoughts, and about 6.7% have attempted suicide at some point.
While there is no specific recent data explicitly correlating these mental health issues with student loan debt, the pressure to achieve success at any cost in India, followed by silence when things don't go as planned, is a significant part of the student debt dilemma. The emotional and financial burden of student loans can exacerbate existing mental health issues, making it crucial to address both the financial and mental health aspects of student loans.
The government's Credit Guarantee Fund for Education Loans (CGFEL) provides a safety net for loans up to ₹7.5 lakh, but few students utilize it. Parents or guardians who co-sign education loans may face harassment or legal action if the student is unable to repay, adding to the stress and anxiety of the borrower.
To address these issues, experts suggest that loan terms in India should be fair, transparent, and flexible, and debt counselling should be mandatory in colleges. Interest subsidies aimed at economically weaker sections often fail to reach their intended beneficiaries due to delayed disbursements, low awareness, and paperwork hurdles.
Recognizing the importance of mental health, the Indian government is actively responding with multi-pronged approaches like psychological assistance through programs such as MANODARPAN, suicide prevention services, stress management workshops, and anti-drug campaigns. Institutions like the IITs are conducting resilience-building workshops. Despite these efforts, experts emphasize the need for comprehensive mental health programs in schools and universities, including training for suicide prevention and emotional intelligence development for students and faculty.
In conclusion, while there is a need for more data specifically linking student loan debt to mental health issues in India, it is clear that the pressure to succeed, coupled with a lack of mental health resources, is taking a toll on the mental health of students. Addressing these issues requires a holistic approach that considers both the financial and mental health aspects of student loans.
- The loss of mental health among Indian students due to student loans is a concerning issue, especially considering the increasing rates of depression, anxiety, student suicides, and suicidal thoughts among university students.
- To alleviate this problem, it is suggested that loan terms in India should not only be fair and transparent but also flexible, and debt counselling should be made mandatory in colleges to help students manage their finances and mental health effectively.
- In an effort to address the growing importance of mental health, the Indian government has been working on several initiatives, such as psychological assistance programs, suicide prevention services, stress management workshops, and anti-drug campaigns, while educational institutions like the IITs conduct resilience-building workshops.
- However, to create a comprehensive mental health support system, experts advocate for comprehensive mental health programs in schools and universities, complete with training for suicide prevention and emotional intelligence development for students and faculty.
