Student loan debt hit a record high of $1.5 trillion in Q1 2018 according to the US Federal Reserve’s latest data, but while it is typically associated with millennial there’s one demographic it impacts the most: women.
Student Loans Hurt This Group The Most
Student loan debt hit a record high of $1.5 trillion in Q1 2018 according to the US Federal Reserve’s latest data, but while it is typically associated with millennials there’s one demographic it impacts the most: women. They hold nearly two-thirds ($900 billion) of student loan debt as of mid-2018 according to a report from the American Association of University Women; men hold the balance of just +$490 billion.
Here are some more stats from the report that help explain the disparity:
- More women attend college: women represent over half (56%) of enrolled college students as of fall 2016, but hold a greater amount (65%) of outstanding student loan debt.
- More women take on debt: “41% of female undergraduates took on debt in 2015–16 compared to 35% of male undergraduates.” On average, women also “take on more debt than men at almost every degree level and type”. Lastly, “across degree levels women in college took on initial student loan balances that were about 14% greater than men’s.”
- Fewer men have student loan debt at graduation: “71% of women have student loan debt at bachelor’s graduation compared to 66% of men”.
- African American women are the most in debt at graduation: “Black women graduate with the most debt – at $30,400 – compared to $22,000 for white women and $19,500 for white men.”
The difference in student loan debt between men and women is only getting worse, as it has almost doubled in the last four years: “women now graduate with an average of $2,700 more debt than men when earning a bachelor’s degree.” Here are the consequences for women:
- Women earn less than men after college: Full-time working females with college degrees earn 26% less than their male peers. Additionally, “compared to white men with bachelor’s degrees, black and Hispanic women with bachelor’s degrees make 37% and 34% less (respectively) and struggle to repay their loans as a result.”
- Women take longer to repay their loans: Due in part to earning less than men, women paid off an average of 31% of their outstanding debt between 1 and 4 years after graduation compared to 38% for men. Default rates are also higher for women than men.
In sum, this all contributes to the perfect storm. A greater share of women attend college than men, but they also take out more loans and borrow more money in order to do so. Upon finishing their higher education, they earn less than men and are slower to repay their loans.
Aside from the obvious issues of gender equality, these statistics are also important to understanding the future trajectory of US economic growth. By one analysis we’ve seen (link below), US women are the primary breadwinners in 40% of US households. The disparity in student loan debt and earnings means lower growth in household disposable income and, therefore, consumption.
Sources: https://www.aauw.org/article/women-hold-two-thirds-of-college-student-debt/https://www.aauw.org/research/deeper-in-debt/https://www.federalreserve.gov/releases/g19/HIST/cc_hist_memo_levels.htmlhttps://www.refinery29.com/women-breadwinners-household-income-family-impact?bucketed=true
[–]juju51561 points62 points63 points (5 children) | Copy Link
[–]Sonos20 points21 points22 points (4 children) | Copy Link
[–]shaggyctes885 points6 points7 points (3 children) | Copy Link
[–]Cha_Cha_cho2 points3 points4 points (0 children) | Copy Link
[–]DONT_reply_with_THIS30 points31 points32 points (14 children) | Copy Link
[–]ggggggggee15 points16 points17 points (5 children) | Copy Link
[–]eyezofnight1 point2 points3 points (4 children) | Copy Link
[–]ggggggggee10 points11 points12 points (3 children) | Copy Link
[–]aircavscout6 points7 points8 points (0 children) | Copy Link
[–]thrway13121 point2 points3 points (1 child) | Copy Link
[–]ggggggggee1 point2 points3 points (0 children) | Copy Link
[–]hiddenpleasures12313 points14 points15 points (7 children) | Copy Link
[–]lastdumra4 points5 points6 points (6 children) | Copy Link
[–]hiddenpleasures12314 points15 points16 points (5 children) | Copy Link
[–]Cynthaen7 points8 points9 points (2 children) | Copy Link
[–]jnthnrch8 points9 points10 points (0 children) | Copy Link
[–]thrway13121 point2 points3 points (0 children) | Copy Link
[–]TheAC9970 points1 point2 points (0 children) | Copy Link
[–]VillagersUnite14 points15 points16 points (2 children) | Copy Link
[–]Grumulzag2 points3 points4 points (0 children) | Copy Link
[–]jnthnrch1 point2 points3 points (0 children) | Copy Link
[–]deville057 points8 points9 points (2 children) | Copy Link
[–]Reptilian_Brain_4206 points7 points8 points (0 children) | Copy Link
[–]lastdumra6 points7 points8 points (2 children) | Copy Link
[–]Reptilian_Brain_4201 point2 points3 points (0 children) | Copy Link
[–]untitled561 point2 points3 points (0 children) | Copy Link
[–][deleted] 9 points10 points11 points (5 children) | Copy Link
[–]jiveraffe 1 points [recovered] (1 child) | Copy Link
[–][deleted] 0 points1 point2 points (0 children) | Copy Link
[–][deleted] 0 points1 point2 points (2 children) | Copy Link
[–][deleted] 1 point2 points3 points (0 children) | Copy Link
[–]Endorsed Contributorsadomasochrist1 point2 points3 points (0 children) | Copy Link
[–]HannahNeymus2 points3 points4 points (0 children) | Copy Link
[–]Gr0o0vy1 point2 points3 points (0 children) | Copy Link
[–]KakarotSSJ43 points4 points5 points (0 children) | Copy Link
[–]JonathanMekerset0 points1 point2 points (0 children) | Copy Link
[–]TheAC9970 points1 point2 points (0 children) | Copy Link