Among the extensions for rent and loan payments during the pandemic, there was also a grace period given for student loan debt. This was relieving for graduates trying to get on their feet or those that lost their jobs due to shut-downs. Unfortunately, payments had to resume sooner or later in order to pay out loans to current college students. As payments begin again, who will this impact the most?
Generally, student loans impact women more than men. Statistically speaking, women take out more student loans than men in the average year, but women also have a higher percentage of degree attainment. Women often occupy lower-paying job titles, despite carrying around higher loan amounts. According to these statistics, women will feel the end of the grace period more than men.
The issues mentioned above that existed before the pandemic further increased complications, but other factors play into why this will be so impactful. For single mothers, many daycare facilities were closed or operated at reduced capacity, meaning work hours were also be limited. Even a married couple could expect that the woman would have to stay home to care for the children if school or daycare was closed since the man was likely making a higher income.
Though women, and often women of color, are believed to be more affected in this situation, people of all demographics will be affected equally. Student loans tend to set back anyone that uses them, especially if they never obtain a degree.