Student Loan Payments Have Resumed—Here's Why Women May Get the Worst of It

After a five-year pause, the authorities is restarting involuntary collections connected defaulted national pupil loans. The resumption of student loan payments marks a large displacement for millions of borrowers, particularly women. They transportation astir of the country's pupil indebtedness and typically gain little than men, some of which tin marque repaying loans harder.

Background connected Student Loan Payments

Student loans were archetypal paused successful aboriginal 2020 to supply alleviation during the pandemic. The intermission stopped payments and involvement connected astir national pupil loans, and it was extended respective times nether some the archetypal Trump medication and the Biden administration.

After implicit 3 years, the intermission officially ended connected Sept. 1, 2023. Borrowers were fixed a 12-month "on-ramp" play during which missed payments weren't considered delinquent, reported to recognition bureaus, placed successful default, oregon sent to postulation agencies. As of May 5, 2025, that grace play has passed.

Social and Demographic Factors

Women held astir two-thirds of the nation's $1.6 trillion pupil indebtedness successful 2021, according to the American Association of University Women. With collections restarting, galore women who relied connected the outgo intermission present hazard losing a information of their paychecks oregon definite national benefits if their loans aren't successful bully standing.

Additionally, women often gain less than men, leaving them with less resources to repay their debts. Faced with suspended careers and caregiving demands, women instrumentality astir 2 years longer to wage disconnected their loans, which are astir $2,000 higher connected mean compared to those of their antheral counterparts. Longer repayment presumption and bigger balances besides typically pb to paying much successful interest.

Race adds different magnitude to this issue. Black women, for example, borrow much for school than anyone and look a steeper wage gap. A 2022 survey from the Education Trust recovered that 12 years aft college, White men had paid disconnected astir fractional of their indebtedness balances, portion Black women owed 13% much than they’d primitively borrowed.

The Bottom Line

As collections restart, present is the clip for borrowers successful default to research their repayment options. Income-driven repayment (IDR) plans and loan forgiveness programs whitethorn beryllium capable to connection immoderate relief.

At the aforesaid time, there's inactive enactment to beryllium done. Policymakers indispensable instrumentality steps to adjacent the sex wage spread and code different systemic issues that origin pupil indebtedness inequality.