This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Student Loan Debt Bad? It's Much Worse for Women

NEW YORK (TheStreet) -- Men who feel trapped by crushing student loan debt have one thing going for them: They're not women.

According to The Pew Research Center, about one out of five (19%) U.S. households owe student loan debt, with up to 40% of households headed by someone 35 or under owing some amount of student loans. But though the burden of loan debt affects a significant percentage of those under 35 regardless of demographic, it turns out that women are hurt more.

This is because though women and men pay the same amount for their college degrees, they do not reap the same benefits. A recent report by the American Association of University Women, Graduating to a Pay Gap, found that women are often paid substantially less than men upon graduation, putting a heavier burden of loan debt on women.

The study -- which analyzed Department of Education records of more than 15,000 recent baccalaureate graduates -- found that among bachelor degree recipients for 2007 and 2008, women earned an average of $35,296 at their first post-college jobs, as compared with men at $42,918. A pay gap of about 7% or more is evident even among women and men who majored in the same fields and entered the same professions. For instance, female teachers were found to have earned only 89% of what male teachers earned.

The report indicates that the difficulties women have in repaying student loan debt are dependent mainly on this pervasive pay gap and do not have to do with different levels of borrowing among men and women. In fact, the report found that women and men who borrow to finance their college educations usually do at similar amounts.

What the pay gap also signifies is that women are spending more of their salaries on loan repayment than men. Specifically, nearly half of women surveyed in 2009 -- that is, 47% -- were paying more than 8% of their earnings toward student loan debt as compared with 39% of men. This also not only leaves women with less disposable income on average than their male counterparts, but also less leftover funds to invest in savings and retirement plans.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs