Why American Women Hold 2/3rd of the Student Debt

American Women. According to the Americans estimate in student loan debt of $1.5 trillion, two-thirds of this debt amount ($929 billion) is held by American Women.Why American Women Hold 2/3rd of the Student Debt

These figures were confirmed by the America Association of University Women. Many Black women finished their undergraduate education with more debt than all other graduates according to the AAUW. Even down to the women who attend for-profit colleges, they owe far more than those who attended the private or public school (even at least four years)


What could be the explanations as to what made women leave school with more debt? We can account for it as the wage gap, levels of financial literacy and the number of women seeking four-year degrees compared to men connotes to why women hold 2/3rd of the student debt.

The Wage Gap and Gender

Eventually, women make up 57% of undergraduate students in the United States. This was proved from the estimate, as about 60% of undergraduate students seeking a Master’s degree were women. The reasons were that women require more degrees to close. The gap in earning between them and men (report from the Georgetown University Center on Education and the Workforce). Clearly stated, the report connotes that there is. Unbalance with regards to student loan debt.

American Women

American women hold two-thirds of all student debt—here’s why

https://www.cnbc.com › 2018/03/13 › american-wome…

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According to the American Association of University Women (AAUW), women hold roughly two-thirds of all student debt in the nation.

Deeper in Debt: Women & Student Loans – AAUW

https://www.aauw.org › resources › research › deeper-i…

Women hold an average of $31,276 in student debt, leaving them with a monthly loan payment of $307 the year after graduation. Given that women graduating

Women Carry Two-Thirds of Student Loan Debt. How Does …

https://msmagazine.com › 2021/09/03 › women-college…

And of that collective debtwomen carry two-thirds of it, according to a recent study from the American Association of University Women

Student Loan Debt by Gender – Investopedia

https://www.investopedia.com › … › Student Loans

According to the American Association of University Women (AAUW), women hold nearly two-thirds of all U.S. student loan debt, …

This also entails that the number of educated women is more in. Number compared to men because of the way they seek out more graduate school degrees. This expression was stated by the chief marketing officers. Of the online lending platform Laurel Road- Alyssa Schaefer.

“Women are more educated than men and this makes. They rank highest in the number of graduate students who seek for. Graduate school degree “According to Alyssa Schaefer, Chief Marketing. Officer of online lending platform Laurel Road.

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Funny enough, the gender wage gap was the widest in the highest-paying fields. With men earning 17% to 43% compared to women. Slightly because of the occupation. However, women are at the risk of low-income disposable to pay back loans and make them take a longer time to repay.

The Real Wage Gap

Like we mentioned earlier that women have a more difficult time repaying loans as a result of gender and racial discrimination and more, the American Association of University Women has the full estimate of how women hold 2/3rd of student debt. Black women leave school with $37,588 average debt (the highest of any group). For white women estimated too for $31,346 whiles the white men, $29,862 was estimated. Meanwhile, the estimated figures exclude the average number of students who graduate without debt.

Nevertheless, the black women who alternatively graduate with higher debt were because they prioritize educational attainment and job passions over high salaries.

More women tend to pursue careers in education, psychology, social work which requires masters or doctoral degrees. Nevertheless, men pay less according to “Mary Eschelbach Hansen (a professor of economics at American University. Obviously, because these areas are important, women yield more despite the cost it takes to qualify for them, without considering the pay.

Cost of Debt and Financial Literacy

according to a 2017 study that was co-authorized by Lusardi, 30% of women subjected to questions about finances were able to give clear distinction and this made a strong conclusion that they were all literates of financial matters unlike what it seems compelling 30% of men.


Annamaria Lusardi is the academic director of the Global Finance Literacy Excellence Center at the George Washington University School of Business. There had a strong conclusion that women leave school with debt because of the analysis in the above paragraph. Thus, they end up borrowing more money than necessary and most times, at high-interest rates.

Even though financial literacy improved in advanced economies, the gender gap still remains because 59% of men can barely answer questions on financial topics unlike 51% of women.

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