Why Women Have a Harder Time Paying Off Their Student Loans

Home Manage Money Why Women Have a Harder Time Paying Off Their Student Loans

While student loans are common to both men and women in the United States, women generally have a more difficult time paying off their debt after graduation. A recent trend shows that graduates are delaying marriage, having kids, and purchasing houses in order to settle their student loans first.

At present, twenty-five percent of college graduates have more than $30,000 in student loans. However, women shoulder this financial burden more than men do. It is a fact that there are more women in college today, and they are more likely to continue with a graduate degree. That’s one of the reasons they have more debt than men do.

Forty-two percent of women have more than $30,000 in loans after they graduate, compared to just twenty-seven percent of men. As a result, women find it harder to pay down their student loans. In the United States, women, because they have more debt after their graduation, need to take more time to pay the debt off, as compared to men. It is important that people recognize the additional burden of these loans on women if they want to solve the issue of the gender wealth gap.

1. Debt Burden on Women

Americans owe $1.5 trillion in student loans alone, and women own two-thirds of the amount. Women take on more loans than men do on all education levels. The average debt women have is 14 percent higher than that of men.

To understand why women, have more debt than men do, you should know the root causes. Discussed below are the main reasons why women, and not men, find themselves having a greater financial burden.

Want free money?

  • Aspiration: Want to get spotted a $100 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $100 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

2. Less Financial Help from Parents

Women get less help in paying for higher education from their parents. According to a study, more parents with sons save up for a college education, as compared to parents who have daughters. The former even prioritize saving for their sons’ college fund over saving for their own retirement fund.

As a result, households with daughters only have less money saved for college. The study showed that only thirty-five percent of such households have money for a female child’s education. On the other hand, fifty percent of households with sons have money set aside for education.

Parents with sons are twice as likely to shoulder all the expenses in colleges. There’s a huge disparity in the numbers, considering that fifty-six percent of college graduates in the United States are women.

3. Wage Gap

Another cause of the problem is the wage gap between men and women. On average, women in the US are paid twenty percent less, as compared to men. Women of color are paid even less. The wage gap adds to the financial burden women face after they get out of college. That means women take home less money after making their monthly loan payments.

4. Failure to Get a High Paying Job

After women graduate from college, they enter a highly competitive job market. Many people can’t find a job in their field and end up working in low-paying jobs when they get out of college. As a result, they don’t make enough money for debt payments and rent.

Once they get a better job, it’s not much help because they are already behind in their financial obligations and burdens. It puts women at a disadvantage at a young age. When they look for job opportunities, they need to factor in how much money they need to earn to pay off their debt as soon as possible.

Some women even stay in school for a few extra years. They study to obtain a master’s degree in order to remain a student, so they can delay starting to pay off their loans because they know they can’t afford to do so. However, they fail to land a high paying job even with their degrees.

Want free money?

  • Robinhood is a free investing app for your phone. I really mean free all around – free to join and they don’t charge any fees to buy or sell the stock. You can get a share of stock like Apple, Ford, or Sprint for free when you join through this link (must complete application). The value of the free share may be anywhere between $2.50 and $200 and fluctuates based on market movements. You’ve got nothing to lose.

5. Drop Outs and College Debt

Graduates are not the only ones who have problems with their debt. People who leave school without completing their program are twice as likely to default on their other credit loans. While their debt is smaller than that of a graduate, their chances of landing a good job are low because of the lack of a degree or certificate.

Solution to the Problem

One of the recommendations made by the American Association of University Women is to make refinancing possible for both private and federal student loans. They also call for Pell Grants to cover other costs women student can’t afford, such as childcare.

This association also wants Congress to update the Equal Pay Act and prevent employers from basing wages on the potential worker’s salary history. This practice has been banned by the City of New York.

Narrowing the gender pay gap provides a short-term solution to the problem. By banning discriminatory wage practices, women would have greater opportunities to earn more and pay off their debt faster.

Instead of waiting for Congress to assist you, you can do several things to help lessen the financial burden. You can look at refinancing your student loans. You could also consult a private lender on how to save money while paying down your loan.

Women should also assess whether the degree they are working on will be worth the money they are going to borrow to earn it. You should research different post-graduation options and find out how they can affect your chances of getting a good job.

Want free money?

Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

By being prepared before setting foot in college, you will be more ready to face the financial challenges waiting for you as you strive to earn your degree.

The Best Apps to Save You Real Money

We are on our phone a lot, right? Wouldn't it make sense to save money with the best money saving apps?

AppAt a glancedownload
aspirationAspiration
★★★★★
Get a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.
CLAIM $100 BONUS
robinhoodRobinhood
★★★★★
Open a new account in the next 24 hours and you could get up to $200 in free stock.
CLAIM FREE STOCK
Truebill reviewTruebill
★★★★★
This free app delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.
SLASH YOUR BILLS
capital one shoppingBestow
★★★★★
Leave your family $1M. Who doesn’t want to be a millionaire? While we don’t all have trust funds waiting for us, there is still a way to provide protection for your loved ones with up to $1 million in term life insurance. You could do this for as little as $8 a month by getting a free quote from Bestow.
GET ESTIMATE

About the author

On a similar note...

Explore More On

Do you want free money?

Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

CLAIM BONUS

Our Favorite Apps

ImageDescriptionGo
personal capitalThe First and Only Interest Earning Crypto Account
  • Receive up to $250 Bitcoin bonus when you make qualifying deposits over the first 30 days
  • Receive up to 8.6% annually on your crypto
  • Join the most trusted financial services for crypto investors on the market
Learn More
aspirationThis Company Will Give You $150 for Opening a Free Account
  • Boost your savings and earn up to 1.00% APY interest on your savings
  • Get up to 10% cash back on your purchases
  • Get $150 bonus when you spend your first $1,000 with your new Aspiration Plus Card
Learn More
personal capitalGet Up $500 in Free Stock for Joining
  • Commission-free stock, ETF and options trades
  • Get a free stock worth up $500 when joining (must complete application)
  • Simple, easy to use investor platform with no account minimums
Learn More
sofiAll-In-One Investing That's Easy to Use
  • Invest in stocks, ETFs, crypto, or automated investing in all one app
  • No commissions for stocks and ETFs
  • Complimentary access to SoFi Financial Planners
Learn More
personal capitalThe Smart and Free Way to Manage Your Money
  • Take control of your finances with the perfect union of technology and highly personalized service
  • Get access to free online financial tools, including retirement planner, investment checkup, net worth calculator and more
  • Digital-first wealth management advisor with 24,000 clients in 50 states
Learn More
blooom401K and IRA Management
  • Start your free 401k and IRA management now
  • Find and reduce hidden fees
  • Improve your diversification
Learn More
citEnjoy the Benefits of a CIT Bank Money Market Account
  • A CIT Bank Money Market Account helps you get more from your savings with interest rates for maximum growth
  • Earn over 7x the national average with high-interest rates
  • It now pays to open a money market account with CIT Bank
Learn More
Do NOT follow this link or you will be banned from the site!