Do Women Suffer More With Personal and Student Loans?
Recent studies have concluded that when it comes to repaying debts acquired through personal loans and student loans, women tend to have a much harder time than men. The reason for this, the study suggests, is that in the United States, women tend to earn less than men, but student and personal loans do not discriminate this way. In fact, acquiring any kind of debt represents an equal burden regardless of one’s sex. Now, simply put these two facts side by side and the student and personal loan markets start to look substantially scarier for women.
Another report by the American Association of University Women found out that as of the year 2009, women who are one year out of college are already earning less than their male counterparts, earning an average of 82 percent when compared to men that were also had been one year out of college. However, despite women earning less than men, they both had acquired somewhat similar amounts of student and personal loans. Additionally, women tend to acquire more personal loans than men – around 68 percent compared to 63 percent -, which means that the moment women graduate from college they are already destined to have a substantially less amount of disposable income when compared to men.
According to many reports, analysts all over consider that a repayment burden for a personal loan or student loan that is of more than 8 percent of the earnings of the personal loan holders tend to be almost impossible to manage. Despite of this however, one out of every five women who are one year out of college are already paying more than 15 percent of their entire earnings to cover their personal and student loans.
In short after graduating from college, women earn less and have more expenses than men have in the same circumstances.
In the long run that tighter situation translates in fewer vacations and less expenses for women, which puts them at a clear disadvantage when compared to men even if they have the same education, knowledge and skills. Another important aftereffect of having less disposable income due to their personal loans is that women will also have less money to save towards their retirement accounts.
So, in which ways can women turn around this situation? The first that some analysts suggest is for women to major on fields that have higher demand, like education, humanities, math and biology, where the studies found that women tend to achieve salary parity when compared to men. Careers like social and computer science, business, and engineering are the ones where women tend to be more at a disadvantage.
Another interesting fact to notice: While in some cases women that boast the same college major as men can earn the same amount of money as them, they never make more than them.
According to the report issued by the AAUW, even when controlling a series of variables in their study, like demographics, education type, occupation, hours worked, marital status, geographical location and other personal ones, women will still earn less than men. Of course, this is something that affects all of the U.S. society at a systemic level and there is really very little that can be done about it in the short term besides educating people better.
Thankfully, the gap is shortening every year and there is some evidence that today’s young women will enjoy almost-fair to fair salaries when they enter the workforce after graduating. Proof of this is that young, single and childless women are already earning more than young, single, childless men across most of the country’s 50 largest cities.