Census data gathered for a report released by the U.S. Senate’s Joint Economic Committee found women working full-time earn $10,800 less per year than men. Over the course of a career, this adds up to a difference of almost $500,000. Research has found wage differences account for women taking longer to pay back their higher education debts. Women are also more likely to make unaffordable student loan payments each month.
According to a study from the American Association of University Women (AAUW), female 2007-2008 graduates paid back 33 percent of their loans between 2009 and 2012. In comparison, men paid back 44 percent of their student loans between these years.
A majority of women contribute more to their student loan payments than they can afford. The AAUW study found 53 percent of women made unaffordable payments between 2009 and 2012. In comparison, 39 percent of men made excessive payments during this time.
You May Have Options to Avoid Unaffordable Student Loan Payments
Unaffordable student loan payments can hurt your finances in several other areas. For example, you may have less money to save for an emergency or your retirement. It means less money to put towards starting a business or investing. In addition, it becomes more difficult to afford basic living expenses.
If you are overpaying your student loans, you may benefit from income-based and public service loan forgiveness programs. These programs limit your monthly payments to a percentage of your discretionary income. Once you start making more money, you can exit these programs.
If you have private higher education debt, you may benefit from refinancing your loans with lower interest rates. Refinancing may reduce the amount of compound interest added to the principal balance of loans.
Do not assume you lack options to ease the burden caused by excessive student loan debts. Our attorneys are experienced at helping struggling student loan borrowers find options that best suit their needs.
The Kansas City bankruptcy attorneys at The Sader Law Firm can assist you with loan modification, repayment, and bankruptcy options. For more information on how we can help, continue exploring our website.