Student debt makes it nearly impossible for many women to cover their basic living expenses after graduating from college, an analysis by the American Association of University Women (AAUW) shows.
According to the report AAUW's 2021 Deeper in Debt, women in the U.S. have an average student debt of $31,276, leaving them with a monthly loan payment of $307 in the year after graduation.
And the fact is, given that women graduating with a bachelor's degree expect to earn an average of $35,338 per year, only 81 percent of what men anticipate earning, meeting the loan obligation is challenging at best.
The organization details that one year after college, women spend an average of $920 per month on housing, $396 per month on a car loan and, for the 16 percent who are mothers, $520 on child care.
So, adding that $307 student loan payment makes it difficult, if not altogether, to make ends meet.
"This unsustainable level of debt is forcing many women to delay major life milestones, such as buying a home, starting a family and building up retirement savings," said Kim Churches, executive director of AAUW.
"We can no longer ignore the student debt crisis, especially as women's disproportionate share of job losses during the pandemic further undermines their ability to repay it. We need our legislators to take action immediately," she added
To this, we must add the disparities towards women of color.
According to the study, African-American women owe 20 percent more on their student debt compared to Caucasian women.
One year after graduating, white women owe 33,851 on these loans, while women of color owe an average of 41,466.
Cumulative graduate loan debt is $75,085 for African-American women, compared to $56,098 for white women.
"This is yet another example of how systemic racism and sexism conspire in a way that puts black women at an even greater disadvantage," Churches stressed. "The specific needs of women of color must be paramount in any policy we adopt to address this crisis."
In that regard, AAUW has called on state and local governments to make college more affordable for low- and moderate-income students by investing more in public institutions; while calling for federal grants to be increased and expanded, as well as equitable student debt forgiveness for all borrowers.
"Student debt is a crushing burden for millions of women, but it's also a burden on our economy," Churches explained. "We need to make college accessible and affordable for everyone. Getting a good education and becoming a productive member of society shouldn't come at such a huge cost."
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