student loan debt

Women hold a major share of student loan debt in the US – Any reasons behind this?

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As per a recent report, women are carrying around 2/3rds of the outstanding student loan debt of the nation. This alarming statistic has been given by a new report offered by the American Association of University Women which is an education advocacy group. In order to be sure about the statistics, 58% of the college students are women and hence it can be easily concluded why so many women are carrying student loan debt. Student loans are gradually becoming a burden as too many of them are pursuing their higher education.

At present, 7 among 10 students take resort to loans so that they could obtain their degree. The average student leaves school with $30,000 in debt and nearly 25% of them owe more than $100,000. Majority of the Americans are extremely burdened with educational loans and these loan amounts are way more than what they owe on car loans and credit cards.

Implications of student loan debt on the economy of the nation

As long as the conversation on student loan debt is concerned, this starts with definite demographics which are harder and tougher than others. Even though you might compare apples to apples, still women are carrying more debt individually. As per recent statistics, in the year 2016, the average woman left undergraduate education owed $22,620 as against $18,650 for men. Hence there is a huge difference between the two amounts. In fact, black women are taking on disproportionate debt amount and they’ve racked up $25,000 in the form of student loans to obtain bachelor’s degree.

Besides, women are more likely than men to have household responsibilities to balance their coursework and hence they might take too long to graduate. As they spent more time in school, this can lead to more and more loans.
Is there a wide wage gap too?

The fact that as compared to men, more women are borrowing in bigger amounts is troubling the women. It is also true that women earn 28% less as compared against their male counterparts outside school. This clearly implies that women will take longer than men to pay back their student loans and hence they can dig deeper into debt.

What do the personal finance experts have to say?

While the men are seen to pay back 14% of their debt annually, women can just pay off 10% of their debt, as per a recent study. 3 years post graduation, women have been seen to pay back less than a third of their debt and during the same time period, men has successfully paid back 40% of the entire amount. These numbers can clearly indicate the irony of education and the system that prevails in the country.

Education certainly plays the role of an equalizer within the nation and in case the rising tuition costs are setting an impact on few people, few more than others, this is now demotivating them to take any step. Hence, as long as you wish to pay off your student loan debts, make sure you are proactive about them.

Student loan debt repayment made easier – Forthcoming changes in favor of students

These days, being an average student has become more of an expensive pastime. The average 2016 college graduate who borrowed student loans left their school with more than $38,000 in debt. This picture can be even grimmer for certain other majors as the average student loan debt for law school grads was around $140,616 and medical students were even worse off with $162,765 in loans. It is indeed fortunate enough that there were new programs which were constantly being introduced every year in an effort to offer relief to the student borrowers.

So, if you’re someone who is about to seek student loan repayment help in 2016, you will most probably encounter the following developments which may offer you just exactly whatever you’re searching for. Check out what you may expect from student loan lenders and how you can benefit by paying off debt.

The introduction of REPAYE

This was introduced in 2016 as an ally to other repayment programs which were driven by income and this is known as the REPAYE or the Revised Pay As You Earn program which opens repayment assistance up to 5 million borrowers every year. Borrowers will easily be able to cap their monthly student loan instalment at 10% of their discretionary income. As a complementary bonus, those on the REPAYE program will have remaining balances which are forgiven after 20 years of timely payments for the students who are undergraduate and 25 years for students who are graduate. The only catch here is that you will be liable to pay taxes on the amount which is forgiven.

New refinancing options sponsored by state

As all sorts of federal benefits have been exhausted and requirements have been tightened for the soaring graduates saddled with student loan debt, more and more states started offering brand new student loan refinancing options for the borrowers. To cite as an example, Minnesota is a state which launched its personal program in 2016. Their Self Refi Program lets Minnesota residents with student loan debt to refinance at rates which are as low as 3% if they are able to meet some requirements. The only benefit of this program is that they may deter the indebted students from relying on private loan programs which may be predatory or even pricier.

Workplace assistance of student loan repayment

As per a study from the Society of Human Resources Management, around 3% of US employers have started offering student loan assistance as a part of their employee benefits. As more employers realize the need for this kind of benefit, the number will gradually grow as they will then start rolling benefits into already existing packages which lure young students. In fact, as per a survey done by Student Loan Hero, more than half of the respondents valued student loan repayment over other employee benefits like 401(k) match.

Get On Your Feet Loan Forgiveness program

This has been introduced in 2016 to a horde of generous and grateful students. The New York Get On Your Feet program is yet another example of a student loan repayment benefit which is one of a kind. This is offered at the state level and it is limited because it is only offered to students in New York. The program provides up to 24 months of federal student debt relief who abide by the eligibility requirements.

Therefore, if you’re someone who is struggling with student loan debt payments, you should inform yourself about the above mentioned student loan repayment assistance programs. It is only when you know them that you can use them.

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