Does Debt Raise UWG Students Self Esteem, Too?

The Ohio State University recently released a study that revealed that “the more credit card and college loan debt held by young adults aged 18 to 27, the higher their self-esteem and the more they felt like they were in control of their lives.”

The study also revealed that the positive view of debt was more prominent in low–income students.

It couldn’t possibly be true, could it?

The study, which involved 3,079 students, surprised its researchers too. They thought that educational debt would be viewed in a more favorable light, since the debt was acquired as investment in their future. What they didn’t expect was that credit card debt was viewed as positive.

UWG students and recent alumni disagree with this data, some students shocked at the findings.

“Wow,” UWG alumna Corryn Fraser responded. “I guess it makes you feel more like an adult because adults have debt. I, personally, don’t feel more like an adult because I have [a few thousands] over my head.”

Terence Dean, another student, reflected Fraser.

“I don’t like owing people. If I could go without owing people, I would,” Dean stated.

While most students disagreed, some tried to see how the study could hold up.

“I wouldn’t say your self esteem goes up because you owe people. Maybe the motivation of having debt will help someone work hard to pay it off,” D’angelo Harris said. “The ability to pay debt, on the other hand, would raise [self-esteem]”

Fraser also had a perspective similar to Harris’s view.

“Paying off my loan is going to help me build up credit and that’s something that every young adult needs,” Fraser said. “I’m not happy I have loans, but I got to go to college and finish in four years. Not every student gets that opportunity.”

One student pointed out that the study may not fully understand what students are indicating.

Student Lauren Phillips explained, “Debt isn’t what makes your self-esteem high. The ability to spend without worry is what makes your self-esteem high.”

“I’m older, but I’ve had the advantage of spending freely. Debt gives me a lower self-esteem. I’m constantly worried about how I’m going to pay off this debt…The consequences are a blow to the chest. It’s not worth it at all,” said Phillips.

UWG alumna Brittany Bembry expanded upon Phillips thoughts.

“The only way it raises [a student’s] self-esteem is because they get refunds. When it comes to refunds, people ball out. But when you’re paying it back, it’s totally different,” Bembry commented.

Having graduated well over six months ago, Bembry understands this concept well:

“To me, credit card debt and student loan debt is very much a burden. It is an additional stress that you have to deal with in addition to finding a job in this economy that is not flourishing. Even though the people who are giving you student loans are willing to work with you, if you are paying $20 a month and you owe $50,000, it’s a cloud over your head. In any situation where I am owing people, I can’t feel my self-esteem is high, unless it is a house. That’s the only thing that collects value. I might be paying these people back for the rest of my life. It’s a reality check.”

The study can be found in its entirety in the journal Social Science Research’s most recent issue.