Research indicates that student loans have negative implications on students' mental health, including depression. However, research on the mechanism by which the student loan leads to depression has lagged. Drawing from the hopelessness theory of depression, this paper investigates the mediating role of negative financial management behaviors as a pathway from student loans to depression. Additionally, the paper discusses implications and interventions that educators can design in their classrooms. The data was collected using IRB-approved questionnaires from 318 undergraduate students at a large public university in the Southwest United States. Preachers and Hayes Process macros were used to test the moderated mediation. Results reveal that negative financial management behaviors mediate the path from student loans to depression. The paper provides tips for educators on how to incorporate discussions on financial management behaviors and mental health in their classrooms. After performing an extensive search, this study seems to be the first to examine the relationship between student loans, negative financial management behavior, and depression among currently enrolled undergraduate students.