Anxiety is a common type of mental health condition that affect approximately one-fifth of US adults. Research indicates that onset of mental illness and certain mental health conditions may trigger problem debt such as delinquency and... more
Anxiety is a common type of mental health condition that affect approximately one-fifth of US adults. Research indicates that onset of mental illness and certain mental health conditions may trigger problem debt such as delinquency and default. Delinquency and default in student debts are becoming major problem in the US with nearly one quarter of student loan borrowers unable to repay their loans on time. Utilizing data from 2018 National Financial Capacity Study, the present study examined the associations among financial anxiety, student loan repayment behaviors, and financial knowledge. Results suggested a negative association between financial anxiety and on-time student loan repayment behaviors. Additional analyses showed distinct patterns among associations between financial anxiety, repayment behaviors, and financial knowledge. Findings have implications particularly for vulnerable population groups as they have disproportionately high amounts of debts, lack access to mental health services, and face more repayment issues compared to other socioeconomic groups.
