How to Combat Financial Stress as a Student - Earnest | Earnest

How financial stress impacts student performance & 4 ways to combat it

By Niamh O'Reilly | Published on October 21, 2025

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In the wake of the COVID-19 pandemic and an ongoing economic shift, it’s no surprise that student financial stress is high. In one study, over 70% of college students reported facing a degree of stress around their financial situation, making it a top concern for higher education.

But, how does this anxiety affect student performance and what can you do if you’re struggling? To learn more, we’ve put together a comprehensive look at stress among college students and ways to manage anxiety.

What is Financial Stress in College Students?

Generally, financial stress in college students describes worries about meeting financial needs. This could include student loan repayments ¹ among other debt, as well as living costs like food and accommodation. When you’re regularly concerned about your bank balance hitting zero, you’re facing financial stress.

What’s more, financial stress can follow you long after graduation–with college graduates across generations reporting some form of stress due to student debt.

How Financial Stress Symptoms Affect Student Performance

Stress among college students is common. From worries about exam season to anxiety around career prospects, learning how to manage stress while you study is a must.

But how does financial stress in college students in particular affect performance? And, how to overcome financial stress as a college student? Let’s take a closer look.

Lower Grades Among Stressed Students

Four out of the five major stressors for college students involve personal finances, with one survey reporting a strong link between economic stress and the likelihood of graduating. Simply put, the more a student worries about money, the less likely they are to gain their college degree.

Statistics also show a clear correlation between financial stress in college students and performance, with lower grade point averages among those who are concerned about money.

Stress and Cognitive Function

One of the causes of lower grades among financially stressed students is likely to be the impact of anxiety. Stress is known to cause a decrease in cognitive function, making it harder to perform at college. It can lead to fatigue and difficulties concentrating, with sleep issues also contributing to a decline in brain function.

It’s also been found that stress has a direct impact on a person’s ability to learn new things, concentrate, and remember information, all of which are key to college success.

Financial Stress and Food

20% of students experience food insecurity related to money. This includes not being able to buy healthy foods or going hungry because of financial issues.

As proper nutrition plays an important role in brain function, this adds another layer of concern around money stress and college performance. Could students be struggling to fuel their brains because of financial stress?

How to Combat Financial Stress in College Students

When it comes to how stress affects college students, it’s clear that money worries can negatively impact studies in a variety of ways. But, fortunately, if you’re experiencing financial stress you can take action to combat your anxiety.

Here are some of the most effective methods to ease your worries.

Seek Financial Support

The first thing you should do when facing financial stress as a college student is to seek out professional advice.

A meeting with your bank account manager or your college’s financial advisor can help take some of the stress off your shoulders, giving you actionable advice for your money.

Professional financial support can help you:

If you have concerns about your student loans², we could help. The customer service team at Earnest* puts your happiness first, and they don’t rely on scripts to interact with students. Instead, they offer personalized, tailored advice for your situation.

Improve Your Financial Knowledge

Expanding your financial knowledge can help you gain control of your money. Get to grips with your finances by using our student loan calculator to better understand your student debt and start tracking your spending through online banking.

There are also plenty of money management books out there that can help you better understand key financial concepts, like budgeting, investing, and credit scores.

Start Budgeting

If you want to gain clarity over your financial situation and start spending/saving more consciously, you need a budget. This should record your income alongside regular payments, like monthly accommodation bills, food costs, and loan repayments.

Once you’ve subtracted your expenses from your income, you’ll have a clear overview of how much you have left to spend on luxuries, like meals out and takeaway coffees.

Can You Earn Extra Income?

By creating a new stream of income, you’ll drastically reduce your financial stress. This doesn’t have to mean a part-time job, either, but it can take the form of a side hustle that works around your studies. You could look into:

You might also be able to start a small freelance venture on the side of your college work. Those studying photography, for example, could look into photographing events on the weekends.

Final Thoughts

Financial stress symptoms have a drastic impact on college performance. Luckily, though, you don’t have to suffer in silence. With professional advice and better financial knowledge, you can tackle your money worries head-on for a more productive semester.

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Niamh O'Reilly

Niamh provides expert insights on topics relating to productivity tips. She is passionate about supporting college students, the next generation of leaders, and entrepreneurs in their journey and finding the latest hacks and strategies to improve efficiencies and realize their career goals and aspirations.