College students encounter various types of stresses in school due to schoolwork, personal relationships, health issues, and future career concerns. Some students are susceptible to the strikes of failures and are inexperienced with or fearful of dealing with setbacks. When these negative emotions gradually accumulate without resolution, they can cause long-term negative effects on students’ physical and mental health. Some potential health problems include depression, anxiety, and disorders such as eating disorders. Universities commonly offer counseling services; however, the demand often exceeds the counseling capacities due to limited numbers of counsellors/psychologists. Thus, students may not receive immediate counseling or treatments. If students are not treated, some repercussions may lead to severe abnormal behavior and even suicide. In this study, combining immersive virtual reality (VR) technique with psychological knowledge base, we developed a VR empathy-centric counseling chatbot (VRECC) that can complementarily support troubled students when counsellors cannot provide immediate support. Through multi-turn (verbal or text) conversations with the chatbot, the system can demonstrate empathy and give therapist-like responses to the users. During the study, more than 120 students were required to complete a questionnaire and 34 subjects with an above-median stress level were randomly drawn for the VRECC experiment. We observed decreasing average stress level and psychological sensitivity scores among subjects after the experiment. Although the system did not yield improvement in life-impact scores (e.g., behavioral and physical impacts), the significant outcomes of lowering stress level and psychological sensitivity have given us a very positive outlook for continuing to integrate VR, AI sentimental natural language process, and counseling chatbot for advanced VRECC research in helping students improve their psychological well-being and life quality at schools.