Student Loan Debt Is Now So High Women Are Being Forced To Choose Between Paying Loans and Having a Family – Yahoo Finance

If U.S. lawmakers ever decide to reform the student loan system to reduce the financial burden on borrowers, women stand to gain the most because they are much more likely than men to be negatively impacted by student debt. In some cases women even have to choose between paying down their student loans or starting a family.
See: 9 Bills You Should Never Put on Autopay
Find:
5 Collector’s Items Worth Selling for Extra Cash
Around 45 million Americans owe a combined total of $1.7 trillion in federal and private student loans, MSNBC reported last week. About two-thirds of them are women.
Because of the gender wage gap, women on average have less money to put toward their student debt than men. Women of color have it even worse because of pay gaps based on race or ethnic background. A recent survey from CNBC and Momentive found that Black and Hispanic women are twice as likely as their male counterparts to have student debt.
Women also tend to have higher student loan balances — an average of $31,276 vs. $29,270 for men, according to a 2021 study by the American Association of University Women. That doesn’t seem like a huge difference — until you factor in average wages.
“When women graduate, their debt repayment collides with the gender wage gap and racial wealth gap to make it harder for them to repay their loans,” the AAUW report said. “Interest then accrues, further widening the debt burden.”
POLL: Have Gas Prices Affected Your Driving Habits?
Before the COVID-19 pandemic, women who graduated with a bachelor’s degree expected to earn an average of $35,338 their first year out of college, or about 81% of what men expected to earn. The gap likely widened during the pandemic because a disproportionate number of women had to leave the workforce or reduce their hours to care for home-schooled kids.
The AAUW study found that women spend an average of $920 per month on housing, $396 on car loans or leases, and $307 on student loans. For the 16% who are mothers, an additional $520 goes towards childcare every month, which leaves a monthly deficit of $372.
One result is that some women might have put off saving for retirement, buying a home, launching a business — or starting a family. Among the latter group is Tasha Kaminsky, 33, a director of development at a non-profit organization in St. Louis.
In a recent interview with MSNBC, Kaminsky said she would love to have children, and she seems a perfect candidate: She’s happily married, has a stable job and owns a home. But she still owes more than $100,000 in student debt from loans she took out a decade ago. Adding a child to the mix would make her financial situation almost untenable.
“We can either continue to live comfortably, or we can live on a shoestring budget because of the student loans,” Kaminsky told MSNBC.
The best outcome for borrowers like Kaminsky is for President Joe Biden to take action to forgive all or part of federal student loans. That hasn’t happened yet. As it stands, the federal student loan pause is set to expire on August 31, 2022.
More From GOBankingRates
13 Best Places on the West Coast for Couples To Live on Only a Social Security Check
Nominate Your Favorite Small Business To Be Featured in GOBankingRates' 2022 Small Business Spotlight
What To Do With Your Money During High Inflation
12 Essential Money Tips for Every Phase of Your Financial Life
This article originally appeared on GOBankingRates.com: Student Loan Debt Is Now So High Women Are Being Forced To Choose Between Paying Loans and Having a Family
Be greedy (and lazy) when others are fearful.
Concerns surrounding the growth of big tech do not apply to George Soros. The Federal Reserve's decision to aggressively raise interest rates to fight inflation, which is at a 40-year high, threatens to push the economy into a recession, many analysts say. This inflation, which is particularly impacting consumers, is a huge problem for the technology sector, because tech products and services are the first to suffer from spending cuts.
What time does the stock market close the day before Thanksgiving? Is the stock market open on Black Friday?
With a history of decades-long investing success, billionaire Ken Griffin knows a thing or two about market behavior. Recently, the Citadel Investment Group Founder and CEO offered some of his thoughts on the state of the stock market and where the economy is heading. While Griffin believes inflation has already peaked, he thinks the Fed has yet to truly put the “genie back in the bottle.” He also thinks unemployment is about to rise and expects a recession will likely materialize “sometime in t
Warren Buffett — the Oracle of Omaha — is widely regarded as one of the greatest investors of all time. Berkshire Hathaway Inc. (NYSE: BRK-A) has returned tens of thousands of percent over the years and consistently outperforms the market. Buffett purchased the company for just $8.3 million in 1965, and it’s now valued at nearly $700 billion, roughly a 10 million percent return. But one of Buffett’s top all-time picks and longest-held positions is one you might not expect. Berkshire Hathaway fir
FTX lawyers say a substantial amount of assets are missing or stolen in latest bankruptcy proceedings; Cathie Wood still sees Bitcoin at $1 million
By 14 years and a million miles, it’s not 2008.
ACCRA (Reuters) -Ghana's government is working on a new policy to buy oil products with gold rather than U.S. dollar reserves, Vice-President Mahamudu Bawumia said on Facebook on Thursday. The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs. Using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products, he explained.
Patience can pay off handsomely when you're invested in companies with clearly defined competitive advantages.
Amazon (NASDAQ: AMZN) is one of the best-performing stocks of the past generation, but 2022 has mostly been a disaster for the tech giant. The stock is down 47% year to date, revenue growth has slowed to all-time lows, it's closed dozens of warehouses after overestimating demand, shuttered once-promising projects like Amazon Care, and just reported that it's laying off 10,000 corporate employees. While it's clear Amazon has struggled this year, those challenges seem well-reflected in Amazon's stock price.
In this article, we discuss 25 highest-paying monthly dividend stocks. You can skip our detailed analysis of dividend stocks and their returns in the past, and go directly to read 10 Highest-Paying Monthly Dividend Stocks. As high-interest rates and inflation have pulled down the market this year, dividend stocks are gaining a lot of traction […]
Instead of gearing up to trade Thursday, investors may be defrosting their Thanksgiving turkeys—and clipping coupons ahead of Black Friday.
The legendary investor continues to believe that the Dearborn automaker will be one of the winners in the auto market.
Elon Musk has disbanded Twitter's entire office in Brussels after a row over the policing of the social network's content in the bloc.
Investors anxiously await the quarterly release of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) 13-F regulatory filing. It reveals which stocks Warren Buffett's holding company bought and sold during each quarter, and that gives investors lots of food for thought about investments. The third-quarter filing offered some interesting news for Buffett-followers, such as a new position in building products company Louisiana-Pacific.
'The Big Bang Theory' cast member and 'The Flight Attendant' actress Kaley Cuoco grabbed everyone's attention when she walked down the red carpet in a black see-through lace dress.
This year has been tough for investors. The inflation numbers may have been down in October, but it was still 7.7% compounded on last October’s 6.2%, and that’s too high. Interest rates are rising fast in response, making capital more expensive, and the available cash is chasing goods constrained by tight supply chains and continued COVID lockdowns in China. Food and energy prices are high, and likely to rise, as Russia’s war in Ukraine puts a major clamp on global supplies of natural gas, wheat
The word "hypergrowth" does not describe the current technology bear market. Such a change may point to buying opportunities in tech stocks such as SoFi Technologies (NASDAQ: SOFI) and Zscaler (NASDAQ: ZS). Amid the moratorium on student loan payments because of the pandemic, it had to pivot into other areas of finance.
Among the telecoms is Verizon Communications (NYSE: VZ), the second-largest provider behind AT&T. The stock sports an attractive 6.89% dividend yield, which also places it in red-flag territory. Often, when a stock's dividend yield rises higher than 5%, it's seen as a warning sign that the company won't be able to pay its dividend obligations sustainably. Should Verizon shareholders be concerned?
TikTok is hit or miss for accurate advice on finance topics. Although the "#finance" hashtag has amassed over 989 million views, there is just as much bad advice as there is good. But one user shared a tip that went … Continue reading → The post TikTok Exposed a Major Mistake You May be Making in Your Roth IRA appeared first on SmartAsset Blog.

source

Leave a Comment