June 10, 2020

How Student Loan Debt Weighs The Heaviest on Latina Students

News

As Latinas continue to make historic workforce, educational and political gains, they also continue to face unique economic vulnerabilities that pose seismic threats to their financial security. From student loan debt to racial wealth gaps, they’ve had to navigate increasing demands on their cash flow while often having less of it to begin with. While not the type to sit around and wait for progress and prosperity to arrive, Latinas will instead fiercely search for opportunities that can mean a better quality of life for themselves and for their families. Yet, these opportunities often come with a big price tag.

Education has long been regarded as a great equalizer. But despite tremendous strides on the educational front, Latinas continue to play catch-up when it comes to wealth and wages. According to research conducted by the Economic Policy Institute, as Hispanic women increase their educational attainment, their pay gap compared to white men actually increases. Check out these even more shocking facts + figures:

• The largest dollar gap (more than $17 an hour), occurs for workers with more than a college degree.
• Even Hispanic women with an advanced degree earn less than white men who only have a bachelor’s degree.
• White non-Hispanic men with only a college degree are paid, on average, $7.53 more than Latinas with an advanced degree.

Higher paying jobs often require higher forms of education and Latinas have proven they can rise to the challenge. According to a report on U.S. Latinas by NBCUniversal, Millennial Latinas with an associate, bachelor’s, or graduate degree grew 70% over the past two decades. Yet, with a deeply embedded wage gap at play, modern mujeres (women) have had to rely more heavily on student loan debt, and riskier forms of student debt to fund the educational opportunities that could potentially lead to higher levels of personal and professional advancement.

In a 2019 Statistical Briefing by Unidos US, it was reported that among major debt categories, Latino families witnessed the largest increases in educational debt between 2007 and 2016. While only 14% of Latino families held educational debt in 2007, close to 20% had acquired educational debt by 2016. With nearly one in three (31.4%) of Latino GenZ and 30.8% of Latino Millennials grappling with student loans, this crisis-level student debt has had the power to not only challenge our immediate economic survival, but also hinder our long-term asset building capacity.

For Latinx families who are already disadvantaged by generational pay and wealth disparities, carrying the disproportionate burden of student debt can leave them and their families more likely to experience negative financial events after graduation such as loan default, higher interest rate payments, and higher graduate school debt balances. With rising tuition costs outpacing inflation and wage growth, debt-financing higher education will undoubtedly equate to needing to hustle harder and longer just to stay afloat. With student loan debt in 2020 at nearly $1.6 trillion, there has never been a more critical time for Latinas to understand all of their options both in choosing student loans and choosing how to repay them.

Empowering and Supporting Latinx borrowers

Seeking out the products and services that can help shave numerical digits and years off of student loan bills can be a game changer. From helping Latinas find their best and lowest repayment plans, while checking to see if they qualify for student loan forgiveness programs, Chipper will truly become a modern mujer’s (woman’s) student loan sidekick! Chipper’s founder is Latinx too and understands first-hand the very real and oppressive challenges the Latinx community can face when dealing with student loans. Because of this, Chipper is dedicated to getting Latinx and POC on the path toward being debt-free of student loans.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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