College attendance is at a record high. Yet the price tag of a college education has more than doubled over the past generation while household incomes have barely budged. Women hold almost 2/3 of the country’s $1.54-trillion student debt: $929 billion. Women earning a bachelor’s degree graduate owing an average of $2,700 more than their male peers. Student debt is the second-highest source of household debt after housing.
Women take about two years longer than men to repay student loans. From the moment women graduate from college, most face a gender pay gap — which compounds as they age. This makes it even harder to pay off their larger share of student debt. As a result, women often put off saving for retirement, buying a home or starting a business.
In addition,state cuts to public colleges and universities — where spending is down $7 billion from 2008 levels (adjusting for inflation) — has significantly limited affordability and access for many students. It has resulted in rising tuition, reduced services available and closing of some campuses. One analysisfound,in California alone, more than 139,000 students were denied admission from 2004 to 2014 and the state is projected to be short 1.1 million bachelor’s degrees by 2030 due to state cuts to college funding.
FAQs
The Gender Pay Gap's Impact on Borrowing and Repayment
After graduation, the gender pay gap limits the economic resources women can dedicate to student debt repayment. Earning 85 cents on a dollar compared to what their male peers earn, female borrowers will have less to put towards student loan payments.
Which gender holds the most debt? ›
Women are stereotypically seen as irresponsible spenders, but the data doesn't back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
What is the average student debt for a woman? ›
Women graduate owing almost $22,000 in student debt, compared $18,880 owed by men. Black women graduate with an average of $37,558 in student debt. Women with bachelor's degrees who work full time make, on average, 26% less than their male peers, hampering women's ability to quickly pay off debt.
How does student debt affect students? ›
Carrying student debt can affect your ability to buy a home if your debt-to-income ratio is too high. If you have too much student loan debt, you won't be able to save as much for retirement. Student loan debt can lower your credit score, especially if you fail to make on-time payments.
Who suffers the most from student debt? ›
Black and Latino borrowers are disproportionately impacted by student loan debt. Due to racial wealth disparities, most Black and Latino college students come from low-income backgrounds and can count on only a fraction of the financial support.
Which race has the most debt? ›
Approximately three-quarters of Black- and White-headed families have debt, but the median debt-to-asset ratio is 50% higher among Black than White families (Copeland, 2020), with Black borrowers less likely to fully repay loans (Brevoort et al., 2021).
Which person has the most debt on earth? ›
Former financial arbitrage trader Jerome Kerviel is the most indebted man on the planet, owing his former employer $6.3 billion. The amount Kerviel owes to French bank Societe Generale for fraudulent trades made in 2007 and 2008 would make Kerviel one of the 50 richest people in America if those debts were assets.
Who has the worst debt in the world? ›
Profiles of Select Countries by National Debt
- Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
- United States. ...
- China. ...
- Russia.
Are the Average Credit Scores for Men and Women Different? Not materially. As of 2020 women had an average credit score of 704, while the average score for men was 705.
How do student loans affect the economy? ›
Student loan debt can reduce people's ability to spend money, lowering consumer spending, which is a cornerstone of economic growth. Essentially, student loan debt lowers your disposable income, so you can't spend as much on discretionary items.
With $50,000 in student loan debt, your monthly payments could be quite expensive. Depending on how much debt you have and your interest rate, your payments will likely be about $500 per month or more. Your potential savings from refinancing will vary based on your loan terms.
Is $100,000 in student debt a lot? ›
If you have six figures of student loan debt, you know how daunting repayment can seem. Student loan debt in excess of $100K can cause you to pay thousands in interest charges, and your monthly payments can take up a substantial amount of your cash flow.
What is the root cause of student debt? ›
Soaring college costs and pressure to compete in the job marketplace are big factors for student loan debt. Student loans are the most common form of educational debt, followed by credit cards and other types of credit. Borrowers who don't complete their degrees are more likely to default.
Why is student debt a problem today? ›
Higher education financing allows many Americans from lower- and middle-income backgrounds to invest in education. However, over the past 30 years, college tuition prices have increased faster than median incomes, leaving many Americans with large amounts of student debt that they struggle or are unable to, pay off.
What are the pros and cons of student loans? ›
In this article:
| Pros and Cons of Student Loans | |
|---|
| Pros | Cons |
|---|
| Accessible to college students with no or limited credit histories | Default can lead to very serious consequences |
| Lower interest rates than other financing options | They may not be enough to cover all of your expenses |
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Student Loan Debt is Common Across All Race and Gender Groups, Especially for Black Women
- White men. 15.7%
- White women. 19.9%
- Black men. 32.1%
- Black women. 43.3%
- Hispanic men. 18.9%
- Hispanic women. 24.1%
- Other race or multi-racial, men. 18.1%
- Other race or multi-racial, women. 16%
The Burden of Borrowing
Women hold almost 2/3 of the country's $1.54-trillion student debt: $929 billion. Women earning a bachelor's degree graduate owing an average of $2,700 more than their male peers. Student debt is the second-highest source of household debt after housing.
Why there are more female students than male? ›
Most students are female due to admissions policies that heavily weigh high school grades, which females typically earn higher than males. Most students are female because they are more likely to enroll in fields of study that are traditionally dominated by women, such as nursing and education.
Does gender affect financial aid? ›
Despite the fact that women were more likely than men to receive grants, on average women received lower amounts. The average grant given to women was $8,900 compared to $9,700 for men. The average loan amounts were nearly equal for men and women students.
