2 Major Ways Student Debt Burden Is Robbing Women of Their Freedom

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GOBankingRates aims to empower women to take control of their finances. According to the latest statistics, women hold $ 72 billion in personal wealth – but fewer women than men consider themselves “good” or “excellent”. Women invest less and are more in debt, and overall women still earn less than men. Our Financially Savvy Female column examines the causes of these inequalities and offers solutions to change them. We believe that financial equality begins with financial literacy. That’s why we provide tools and tips for women to take control of their money and help them live richer lives.

In today’s column we chat with you Briana B. Franklin, Co-Founder, President, and CEO of The Prosp (a) rity Project – a nonprofit that empowers black women with financial literacy tools – on the student debt burden that weighs on many women, and how that debt is the ability affecting women, experiencing personal freedoms.

Women make up more than half of total student loan debt in the US According to the latest statistics, 58% of all student loan debt – $ 929 billion total – is held by women. But why do women bear the brunt of the student loan debt burden?

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“Women strive to get into these doors and work opportunities [so that they can achieve] Equity, ”said Franklin. “We put a lot of pressure on ourselves to ‘play the game,’ so the women overcompensate and go above and beyond. They don’t stop with a bachelor’s degree – they do a masters or become doctors to help [safeguard] their career prospects. “

And they learn the hard way that an advanced degree doesn’t always pay off. A recent report in the Wall Street Journal found that many graduate students – even those who graduated from elite programs – don’t end up making enough to pay back their loans. And when women are burdened with additional debt, the costs can be more than financial.

The story goes on

Women can delay their children because of their student debts

Financial barriers can lead to lifestyle barriers. Many women may feel that they are unable to meet certain life milestones because they are buried in student debt worth tens of thousands of dollars.

“A lot of women, especially younger generations, say, ‘Well, in order not to bring a child into poverty, I’m postponing my parenting years’ – or they don’t even feel they have a choice,” Franklin said.

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For some women, this can even mean never having children.

“Women are like, I’ve accepted that I’m 60 or 70 when I have mine [student loan debt] has paid off and this is my time to have kids, ”she said.

Women may not be able to buy a home because of their debts

Student loans not only prevent them from delaying raising children – either voluntarily or out of necessity – they also prevent women from becoming homeowners.

“Homeownership suffers greatly from the student loan burden of our generation,” Franklin said.

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And this is a life milestone that has a long lasting ripple effect. Homeownership barriers can harm not only current generations of women, but future generations as well.

“Just last night one of our program members emailed me saying she was trying to get a half a million dollar home loan so that she could move her son – who is going to kindergarten – to a better one School district can bring. They basically disregarded her right away because she owed about $ 300,000 in student loans, ”Franklin said. “The pain in her email was palpable. This woman is trying to build her next generation and give him a better education and it is already proving to be such a challenge as she decided years ago to get all of these degrees. “

But student loan debt doesn’t have to steal your freedom

Although the situation may seem grim, Franklin said women should still be optimistic about tackling their debts and regaining their freedom to do what they want in life.

“There is so much literature out there talking about student loan debt and how grim it is, and in an effort to educate people, many outlets depress people and make them feel like they are because the problem is so big That doesn’t stand a chance of ever getting out – especially those on the very end of the spectrum, ”Franklin said. “I want to emphasize that people have more control than they usually feel. I know it can be debilitating – I can absolutely speak from experience. My family actually had a border intervention for me when I started breaking free from college debt because I had completely overhauled my lifestyle. I was ready to sell my car, I was ready to move in with my grandpa, who lived in a tiny apartment with his girlfriend. “

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Rather than making huge sacrifices, Franklin decided to start small and swears by the debt snowball method to get out of debt.

“I did it myself when I started my debt-free trip in August 2019,” she said. “Even if I’m not out yet, it helped me to get a grip on myself. I sat down and made an Excel spreadsheet with all possible debts – not just my student loans, but also my car payment at the time, my credit cards, my cell phone that I had financed – and did it exactly as instructed: lowest to highest balance , the interest rate and the lender. I set myself a soft goal for when I wanted it [each debt] It paid off to have some kind of motivation. Those dopamine hits Dave Ramsey talks about are real! When I paid off my $ 400 debt, I thought, ‘Oh my god, it’s gone.’ Then it was $ 735 [debt], after that it was $ 1,100. It’s really contagious to see that you can actually start the engine. “

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For people with large debts, Franklin admits, starting with small balances can feel like “draining an ocean with a spoon” – but every little bit counts.

“You know that diligence and persistence can help make a dent,” she said. “It is not for free, and your future you will benefit tremendously from making this decision – deciding that this is how you will change your life. It’s not impossible, and I want our generation to feel that they are still in control and have the ability to live what they want, despite the college debts. “

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This article originally appeared on GOBankingRates.com: 2 Main Ways Student Debt Loads Deprives Women of Their Freedom

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