We’ve already talked about how damaging too much student debt can be for young grads.
But did you know that young women can be hit the hardest by debt overload?
That’s because women earn, on average, only 79¢ for every $1.00 earned by men. That wage gap is true even for highly educated women MBAs and other professionals.
With slimmer paychecks, young working women find that each student loan payment takes a bigger chunk out of their earnings.
“It will take women MBAs a year longer than men to pay back their student loans,” according to data analyzed by Bloomberg, observing that women earn $35,000 per year less than men eight years after B-school graduation.
So even though women and men borrow roughly the same amount, women struggle more to pay off the debt due to lower earnings. “That means that four years after graduating, student debt takes up 25 percent of women’s earnings but only 14 percent of men’s,” said Bloomberg, adding that the same disparity is true at the undergraduate level.