Why Should Women Pay More? Evidence of the Gender Pay Gap on Student Debt
Posted: 17 Jul 2019
Date Written: July 15, 2019
Does the gender pay gap affect women’s ability to repay their student debt? This study investigates whether women are disadvantaged in student debt schemes that are income-contingent, and addresses a recent policy change to lower the initial repayment threshold targeted at increasing the repayments from women. I model the impact of the forthcoming reduction in the initial repayment threshold on women over the next two decades. Forecasts showed payoff times were increased by the gender wage gap, the reduced income repayment threshold, and the annual CPI adjustment. Policymakers should consider abolishing the CPI adjustment for women.
Keywords: higher education, women, student debt
JEL Classification: D1, I22, I240
Suggested Citation: Suggested Citation