Why Women Have More Trouble With Student and Personal Loan Debt – Part 2
Yesterday, we took a look at how women, despite almost everyone’s beliefs, are at a disadvantage when it comes to the amounts they earn when compared to men, who tend to have salaries that are at least 10 to 20 percent larger than women’s.
This is already a problem in itself. But what happens when you add that up to the fact that women in our country have acquired just as much in personal loans and in student loans than men? And with no better interest rates or terms whatsoever? What you get is the perfect recipe for a bleak financial future that most women have to face since they have to spend a good part of their salaries in repaying their personal loans as soon as on their first year out of college.
Today, in the final one of this two-part article, we take a better look at what other financial problems women face just because of their gender and at how they might be able to turn the situation to their favor.
To start, it was discovered by a few studies that the pay gap between women and men is caused by many other factors besides the major selected when studying and the occupational choice they face.
As clear examples, any graduate regardless of their gender who majored in the fields of healthcare, education, humanities, math, biology and physical sciences tended to enjoy equal annual payments on they first year out of college. On the other hand, those who graduated in other fields like social and computer sciences, business, and engineering, tended to show the widest salary gaps between men and women.
This comes to show quite conclusively that when men and women have the same college degree, they can make the same amount of money, or not, depending on the degree chosen. However, no matter the degree or level of education, women never make more than men.
Also, as the data shown above clearly demonstrates, men tend to dominate certain fields, like engineering, computer science and information. These fields are, not coincidentally, where the pay gaps for graduates are the widest. So this already starts to show that it might all be just a problem of perception on the part of employees.
But as much as we would like things to be that easy to explain, they are not. In fact, more and more studies and reports keep showing that at least until the year 2009, women not only had to pay the most in personal loan or student loan debt, but also earned about 6 percent less than men during their first year out of college. This, despite controlling other important variables, like hours worked, marital status, location, occupation and more.
So two ways for women to combat this situation and to avoid having to pay so much for personal loans and other debt could be to find employees that are more open minded and that really value their work for what it is. Of course, majoring on one of the carriers shown above could also help quite a bit. As for the rest, it remains a deeply systemic problem of our current society and something that is not solved in just a day.
Still, there are a lot of positive things about the current situation of women. To start, just the fact that they could attend to college and choose their carriers should be encouraging, since it is a choice many women of past generations did not have. And the earnings gap is also decreasing, albeit slowly, which should also give some comfort to women facing debt and personal loan repayments.
To even further accelerate this trend, women nowadays are getting more and more degrees, even surpassing men in some technical areas, which in turn favor their salaries and allows them to repay student debt or personal loans faster.
For now, persisting in acquiring the best education possible is easily the most powerful tool for women to continue to close that infamous wage gap.