Do Male College Students Incur More Debt Than Female College Students?

Today, it seems like a student has to get a college education to get a job. According to the Federal Reserve Bank of New York, outstanding student loan balances in the United States total roughly $1 trillion. So who has this debt? Are the demographics equal or are there differences? Do men borrow more than women? Let’s take a look at the answers.

The Demographics

It’s not surprising to learn that people from affluent families don’t have student loan debt. What may surprise you is that according to Authors’ calculations of the 2012 National Financial Capability Study (NFCS), men and women both have equal amounts of student loan debt.

Minorities incur more student loan debt than whites and people with children have more student loan debt than those without. People who are married or divorced/separated have less student loan debt than those who are single or cohabitating with someone. And the highest age bracket for student loan debt is for ages 20-29.

The Drop-Out Rate

According to a report published on CBS news, almost a third of students with student loans drop out because of their debt. There is a point at which people become overwhelmed by the debt they're incurring by going to college and they drop out. This is unfortunate because the loans still need to be repaid and without a college degree it will likely be more difficult to earn a high-paying job. Researchers took a look at this trend and discovered that women have a higher tolerance for debt than men do.

“The debt level at which male students are more likely to drop out than complete is $12,426, while for women the figure is $14,620, suggesting that female students have a higher tolerance for debt.” (http://www.insidehighered.com/news/2012/08/20/sociologists-examine-patterns-student-debt-gender-and-class#ixzz2jJw1x2sr)

Paying Off Debt

Not surprisingly, everyone who graduates with student loan debt has concern about their ability to repay it. Those with lower incomes are justifiably more worried, though women seem to be more concerned than men. In 2009, 47% of women used 8% of their salaries to repay student debts compared to 39% of men.
(http://www.aauw.org/files/2013/02/graduating-to-a-pay-gap-the-earnings-of-women-and-men-one-year-after-college-graduation.pdf)

Do male college students incur more debt than female college students? According to the data the answer is no. However, they do have a lower tolerance for debt while in college and are more likely to drop out because of debt. Women seem to have more concern for repaying the debt once they’ve graduated, though they do have a higher tolerance for it while in school.

Nakia Evans, GRI, REALTOR

 Associate Broker

Coldwell Banker Residential Brokerage

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