Rising college costs are weighing on students’ mental health, signaling that leaders must ensure campus assistance programs are well publicized to satisfy basic needs like housing and food.
Two new surveys evaluating college spending and student mental health show that finances, housing and food are essential building blocks for learner success at a time when undergraduates appear to be spending more on their education.
Stronger communication around institutional support programs can change the tide.
$500 in an emergency
Anxiety and depression rise when students can’t meet basic needs, according to new research from Trellis Strategies.
The student success nonprofit found that more than half of all learners who could not access $500 in an emergency experienced anxiety, while more than a third reported depression. Rates increased among those who also struggled with housing and food.
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Anxiety, depression and loneliness rates were significantly lower among students whose basic needs were met.
Previous studies from Columbia University and Temple University have linked financial stress, anxiety and depression to higher stop-out rates. The Trellis report, analyzing survey responses from 65,000 undergraduates across 154 institutions nationwide last fall, provides the latest evidence.
Rising college costs
Those challenges come as students and families are spending considerably more to earn a degree.
A separate survey from Sallie Mae and Ipsos found that undergraduates and their families spent an average of $34,019 on tuition and living expenses during the 2024-25 academic year, nearly $4,000 more than the previous year.
The 10% increase was funded largely through personal resources and borrowing. Students and families covered nearly half of all costs out of pocket, while 47% relied on loans.
Of the $34,019 spent (a 10% annual increase), students and parents paid nearly half out of pocket, and 47% of respondents borrowed money to support financing.
“Rising college costs have dramatically changed the student experience for a large percentage of the U.S. college student population, resulting in more students seeking employment while enrolled in college to help pay for their education,” says Carson Domey, executive director of the Coalition for Student Wellbeing, a student-led nonprofit focused on youth mental health.
Why awareness and communication are key
Most students experienced one form of basic needs insecurity between Spring 2023 and Summer 2024, raising pressure on colleges to revive wraparound services, such as financial stipends and emergency food access, that expired after the pandemic. At the same time, affordability is higher education’s most significant public concern.
Colleges have responded with a range of cost-saving measures. Endowment spending has increased over the last three years mainly to fund financial aid, course materials have become significantly cheaper and more institutions are establishing campus food pantries.
Contrary to popular perception, net tuition prices have declined for virtually all students over the last five to 10 years across both public and private higher education.
So why are college costs increasing? One reason is that many students are not taking advantage of available resources.
Nearly 40% of families surveyed by Sallie Mae didn’t use scholarships to pay for college. Three out of four respondents among that group never applied because they assumed scholarships were only for star athletes or first-year students.
Moreover, half of respondents didn’t contact their college’s financial aid office for help paying for college, and 26% didn’t complete the FAFSA.
Trellis Strategies found a similar information gap. Financially vulnerable students were less likely than their financially secure peers to know where to find support services on campus.
“For many students and universities, oftentimes student support resources are available but unknown to the students who need them most,” Domey says. “Universities should leverage institutional touchpoints, such as new student orientation, first-year experience courses and learning management systems, to promote these resources.”
