Thinking about finances, financial anxiety, and student loan repayment behaviors

Abstract This study examines the associations among thinking about finances, financial anxiety, and student loan repayment behaviors. Analysis of 2021 NFCS data shows that thinking about finances predicts an increase in student loan delinquency, while better financial behaviors and objective financial knowledge predict lower delinquency. Additionally, thinking about finances and subjective financial knowledge are associated with higher financial anxiety, whereas financial behaviors and objective financial knowledge are linked to lower financial anxiety. These findings highlight the need for interventions informed by a deeper understanding of how thinking about finances consumes considerable mental bandwidth of individuals, particularly individuals with mental health issues.