By loan I assume you mean you took an advanced learner loan to pay for the course? I wouldnt worry aboyt the debt aspect because if you finish your degree it gets written off.. Student debt is rarely paid back in full in any event.
You attendance is excellent, much better than I think I ever managed.
I would have trouble staying awake for 2.5 hours. The only counters for this I sugest would be a bit of caffeine when you start to doze or a coffee. plus pre prepare so you dont have to focus that hard. I think thats less the issue, but it seems your assignments are and they are your most importnat record of performance.
What grades are you getting? Access is a bit intensive so passes arent really enough and you should be aiming for distinctions with merits. Depending on what you want to do after, then I think the low end you need to be looking at 15 distinctions and 30 merits or absolute min 45 merits. If you are unable to get that then its unlikely to be enough for many courses especiallu at decent unis.
If your grades are bare passes at the moment, then consider whether you are up to the course. If you continue on that way, then your scores may not be enough to get in anywhere. there have been a few posters on TSR who have been in that position.
So what would I do?
You need to make a realistic assessment.
You have three issues:
1. Depression + anxiety
2. Insomnia.
3. Ability to do the course
If your depression and anxiety is so serious, you have had a diagnosis and are getting treatment then I would be trying to sort that out first as its like a massive ball and chain preventing you from doing the course at your best. Some people can carry it and sort themselves out during studies, but you have to think whether you will be able to do this? I dont know the extent of eother, but at the moment it looks like its dragging you down., hence your tutors comments. Only if you can get it under control will you be able to have an unhibited attempt at passing your course.
Its unclear even if you werent depressed or had anxiety how much that would increase your ability to do the work? It would be nice to find out.
If the depression and anxiety is really damaing your ability to do the course such that you will barelt scrape passes and then camt use it to get a uni place I would be thinking about whether to continue. i.e I had 15 pass credits.
If I couldnt establish a very quick turnaround, then I would consider dropping out and getting my anxiety and dwepression under control. I would return when I had done so. I would make a compelling personal reasons claim to have my finance written off and make sure I had medical evidence to support this. SFE want evidence.
My concerns are:
1. Your MH problems need sorting and the course doesnt appear to be helping.
2. MH issues are affecting your performance and it may mean you dont get into the uni you wnat or into uni at all, because your grades are not good enough.
3. Even if you got into uni it might be a poor one and you then have the issue of whether you cna cope with a degree. thes forums are littered with people not coping because of depression and anxiety.
If you get yourself sorted even if it takes 2-3 years more then you cna greenlight your career and enjoy your studies, pass everything and enoy uni. thats why i would say MH is more important than immediate studies because its going to undermine and sabotage you if its not under control. Think about whats in yoru long term interests. I get the impression your tutor is concerned about your likely performance on the course based on what they have seen. Looking after yourself should always be the priority. Exams and courses will always be there for you to take.
https://www.itv.com/thismorning/mental-health-helplinesThe mix is for under 25s and kooth.com is for online counselling.