On top of these financial implications, there are also the looming mental and psychological effects that debt has on students’ mental health. Many students experience profound stress, anxiety and feelings related to shame when thinking about their financial situations related to school. In a 2021 survey, one in 14 student borrowers said they experienced suicidal ideation because of taxing debt situations.

In U.S. colleges, where 41.6% of students experience anxiety and 36.4% experience depression, the question of whether working while attending college full time is a choice that takes careful consideration.

These updated regulations will protect student borrowers from misinformation and hold higher education institutions responsible if borrowers have been misled.

A recent survey by Gallup showed that 50 percent of black college graduates held more than $25,000 in student loan debt, compared to 34 percent of white graduates.