It is no secret that student debt has become a significant issue in the United States today. Women are estimated to hold two-thirds of the nation’s total student debt. That figure may seem shocking, but several factors contribute to this statistic. Let’s look at why women are so heavily impacted by student loan debt and what can be done about it.
Women Accrue More Student Loan Debt
One of the primary reasons why women hold such a significant amount of student loan debt is the gender wage gap. Women earn 20% less than men on average, meaning they have to pay more out of pocket for their education and living expenses while in school. It can lead to more reliance on student loans, leading to higher debt levels after graduation.
In addition to earning less money than men, data also shows that women tend to accumulate higher levels of student loan debt than men over time. A 2018 report from The American Association of University Women showed that female college graduates held nearly $900 more in student loan debt on average than male college graduates did. It could be attributed to several factors, such as gaps in educational attainment between genders or differences in degree fields chosen by each gender.
Women also face other challenges when paying off their student loans, including lower wages after graduation, fewer job opportunities compared to men, and higher rates of underemployment. These factors can make it difficult for women to pay off their debts promptly or even at all, resulting in higher debt levels.
What Can Be Done?
There needs to be some reform regarding how we fund education in our country and how much students must borrow to pursue higher learning opportunities. Especially when it comes to decreasing the number of women who must shoulder large amounts of loan debt upon graduation, we could start making progress by increasing scholarships and grants available for both genders so students don’t have to rely so heavily on loans. We could also increase access to financial literacy programs and resources so young adults learn about budgeting and other important managing matters before considering taking out loans or signing any contracts with a lender.
Reducing Student Loans Through Education Initiatives
The good news is that initiatives are being taken to reduce the burden of student loan debt for women and other affected groups. For example, some states have created programs specifically for low-income students or those from disadvantaged backgrounds looking for ways to finance their college education. These programs provide grants and scholarships to help offset some or all of the college costs. Additionally, some colleges have implemented tuition-free models or reduced tuition rates for students who meet specific criteria, such as having a family income below a certain threshold or being from an underrepresented group on campus.
Final Thoughts
It’s clear that women bear much more financial burden when it comes to financing an education than men, which has led them to hold two-thirds of the nation’s total student loan debt. This disparity needs to be addressed so that all students have equal access and opportunity when pursuing higher education. Initiatives such as grants and scholarships should be further pursued so that struggling students, particularly those who are female, can receive assistance in paying for their college educations, so they don’t graduate with crippling amounts of student loan debt. If we want true economic equality between genders, reducing the amount of student loan debt held by women must be part of the solution.