Mental health and education are deeply interconnected, with each shaping the trajectory of the other. The transition from high school to college represents a particularly vulnerable period, as the onset of many mental health disorders often coincides with the developmental stage of emerging adulthood. Students entering higher education face significant social, academic, and emotional challenges that can exacerbate existing conditions or give rise to new ones. Traditionally, educators, clinicians, and administrators have sought to mitigate these risks through targeted support systems. However, the landscape of higher education shifted dramatically with the release of generative artificial intelligence (GenAI) tools such as ChatGPT in 2022. While AI has influenced educational practices since the 1960s, the scale, immediacy, and disruptive potential of GenAI are unprecedented. Its integration into teaching, learning, and administration has transformed higher education, raising both opportunities and challenges. Importantly, AI’s reach now extends into mental health domains, where it holds the promise as well as the risk of reshaping diagnostic, therapeutic, and support practices. This chapter examines the reciprocal relationship between mental health and education within the context of generative AI’s growing influence, highlighting the transformative possibilities and ethical dilemmas that emerge at this critical intersection.