Background to the Study

Student life is the most vibrant phase in an individual’s life with experiences that they can cherish and enjoy. The various academic, cultural and co-curricular activities nurture students and prepare them for the challenges of adulthood. Viewing this scenario from a deeper perspective, one can understand the predicament of college students in their daily life. The entire idea of an exciting college life is rife with concerns which, in turn, contribute to stress. If these are not dealt with, they may escalate and disrupt their academic performance as well as their emotional and social well-being.

Over the last few decades, financing higher education has changed dramatically. This could be owing to various factors arising from numerous elements ranging from cost of education, curriculum and workloads combined with economic deprivation. Factors that trigger stress affecting like academics, social, emotional and financial has an impact on the academic achievements of a college student. Poor academic performance of students can be a consequence of poor time management, economic hardships, lack of sleep and societal engagements. Various studies indicate that stressors like social, emotional and financial conditions at large, affect the academic performance of students although academics is a stressor all by itself.


Higher Education is a very important driving force for economic development of the country and important for financial movement in the economic growth. (Eric A. Hanushek And Dennis D. Kimko*(2010),( (Alan B. Kruegerand Mikael Lindah*( 2010); (Hanushek Eric A.& Woessmann& Ludger(2017)have proven in their research that investing in higher education is of high value for economic development and growth. Studies done in a diverse set of countries show that the returns on college education have been increasing compared to the primary education. The governments are trying to boost higher education by providing various loan schemes and making it available by various financial institutions. Education loan is an effective tool for financing graduation and post-graduation.

 The education loans by financial institutions is a common practice in developed nations but in India, education loans have earned peak in recent years, particularly after the launch of education loan scheme in 2012 by the Reserve Bank of India (the central bank of India) in collaboration with the Indian Banks’ Association. National Sample Survey (NSS) data shows that participation in higher education has been diverted in favor of consumption expenditure. Well drafted loans make educational loans affordable and accessible to the common man. Financial inclusion by means of education loans help in financial upliftment by getting returns out of higher education.


The college students’ stressors include internal and external pressures exerted by the environment to thrive and success, economic hardships, worries about future, societal problems and opportunities. The average student is financially vulnerable as they typically have few assets and partly incomes. Studies has also demonstrated that students have little financial knowledge. Consequently, it is not surprising that financial stress is the leading stressor among college students.

Abreedy (2015)observed that being financially literate would mean that an individual would benefit from a palette of abilities and attitudes such as a comprehension of money management concept, knowledge of financial institutions and attitudes which enable effective and responsible management of financial affairs.


(Guan, 2015)opines that college students with financial difficulties refer to those whose families can hardly afford their high tuition fees in universities, and should be supported by modern funding system. Dobria (2016) found that college students (Kevinofosnacht, 2013)frequently cite financial difficulties among the top reasons for dropping out. From a financial standpoint, student attrition can be contextualized in terms of personal circumstances and beliefs. Keenamer (2020) observed that the most obvious cause of financial stressor is the cost of due to attending college and most students rely upon substantial loans to cover their tuitions fees. He further established that student financial aid acts as a retention tool, it may in fact serve low-income college students whose access is more vitally important than for choice.Valadez (2012) in their study implied that tuition fees increases significantly affects low-income students compared to those not of low-income background. This poses another issue for low-income borrowers as they now find high debt amounts discouraging, or as a barrier, to pursue a college degree.


(Joo So-Hyun Durband Dorothy Bagwell Grable John (2018); (Ross S. Cleland J. & Macleod M. J (2016); have proposed their research findings as academic failure is associated with financial stress.(Melissa C. Nelson Katherine Lust Mary Story Ed Ehlinger ( 2018) found that financial stress creates adverse health issues. Thus they clarified that stress creates problems like anxiety, insomnia and short temper etc. Joo SO-Hyun et al ( 2018) identified various factors affecting the college students. They describes various factors as reducing expenses, increasing income, improving management skills, borrowing money, employing psychological means to reduce stress, and seeking help.




Considering financial stress as a possible predictor of issues in academic and social functioning and satisfaction among undergraduate residential college students, this chapter presents a review of literature related to research on financial stress in the general population as well as literature specific to the undergraduate college population. Studies on issues in college student’s academic and social functioning and satisfaction, retention rates, and support networks including familial support, peer support, community, and professional support are also reviewed.


Statement of the Problem

In recent years, the pursuit of higher education has become increasingly intertwined with financial challenges that extend beyond the academic realm. As college and university tuition fees rise, along with the cost of living, a growing number of students find themselves burdened by financial stress. This stress is often caused by factors such as student loans, part-time employment obligations, family financial situations, and concerns about future career prospects.

The impact of financial stress on students' academic performance is a critical issue that warrants thorough investigation. While there is a growing body of research indicating a negative association between financial stress and academic outcomes, there remains a need for in-depth analysis that considers various dimensions of financial stress, coping mechanisms, and potential mediating factors. The complex interplay between financial stress and academic performance has implications not only for individual students but also for educational institutions and policymakers striving to create supportive learning environments.

Objectives of the studies

The major objectives of this study is to investigate  impact of financial stress on students' academic performance in Abeakuat local government area of Ogun State

The specific objectives is

1.      To Examine the Relationship Between Financial Stress and Academic Performance

2.      To Identify Factors Contributing to Financial Stress Among Students

3.      To Analyze Coping Mechanisms Adopted by Students Facing Financial Stress

4.      To Assess the Role of Social Support in Mitigating Financial Stress Effects 

Research questions

1.      Is there any relationship between financial stress and students academic performance in Abeokuta south local government area?

2.      What are the factors that contribute to financial stress among students?

3.      What coping mechanisms do students employ to manage financial stress and how do these strategies impact their academic outcomes?

4.      What role does social support play in mitigating the negative impact of financial stress on academic performance?


Research Hypotheses

The following null hypotheses were generated to guide the study

1.      There is no significant different betweet financial stress and students academic performance

2.      Coping mechanisms employed does not have significant  impact on finance stress

 Significant of the study

 It is hoped that, the outcome of this study would enlighten   students to understand the meaning of financial stress and identify its possible causes. However,  students would understand the various financial stress factors responsible for academic success and failure.  

The study would guide counselors, teachers, and psychologists to advice stressed

individuals appropriately and make recommendations and encourage appropriate stress

management behaviors for students who are prone to severe stress.  

 The study's findings can inform educators about the challenges students face due to financial stress. Teachers can tailor their teaching methods and classroom strategies to accommodate students' varying needs and stress levels.

 Students experiencing financial stress may find validation through your research, knowing that their struggles are acknowledged and studied.

Policymakers can use the study's evidence to develop targeted policies aimed at reducing financial stress among students, potentially leading to improved academic outcomes and overall student well-being.

   this study will contributes to the existing body of research on the impact of financial stress on students. It provides new insights and data that researchers can build upon in future studies.

 Scope of the study

This research work is aimed at investigating the impact of financial stress on students academic performance in Abeakuta South local government area of Ogun State, the  study cover five selected secondary school in Abeokuta south local government area.

Definition of basic terms

Stress: Stress refers to a physiological and psychological response to external pressures, demands, or challenges. It involves a range of emotional, mental, and physical reactions that individuals experience when they perceive a situation as demanding or overwhelming. Stress can affect various aspects of a person's well-being and performance.

Financial Stress: Financial stress specifically refers to the strain and anxiety that individuals experience due to their financial situation. It arises when there's a lack of financial resources to meet one's basic needs, cover expenses, or achieve financial goals. Financial stress can lead to emotional distress, health issues, and an overall sense of insecurity.

Academic Performance: Academic performance relates to how well a student performs in their educational pursuits, including tasks such as attending classes, completing assignments, participating in discussions, and achieving grades on exams and assessments. It's a measure of a student's mastery of the curriculum and their ability to meet the expectations set by educational institutions.

Well-being: Well-being refers to a state of overall health and happiness encompassing physical, mental, and emotional aspects. It goes beyond the absence of illness and includes factors such as life satisfaction, positive emotions, a sense of purpose, and the ability to cope with challenges.

Financial Assistant: A "financial assistant" could refer to a person or service that provides support and guidance related to financial matters. This can include financial advisors, counselors, or tools that help individuals manage their finances effectively.

Financial Help: "Financial help" refers to any form of assistance provided to individuals who are experiencing financial difficulties. This help can come in various forms, such as grants, loans, scholarships, emergency funds, or advice on managing finances.



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