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- Simulation with Year 2010 Parameters Model Data Year 2000 Year 2010 Year 2000 Year 2010 Male College Attainment 0.29 0.35 0.29 0.34 Female College Attainment 0.28 0.35 0.28 0.34 College Wage Premium 0.58 0.61 0.58 0.65∗ Gender Earnings Gap∗∗ 0.70 0.76 0.74 0.77 (*) Due to lack of comparable estimates for 2010, the College-HS premium is based on estimates by Autor et al. (2008) for 2005. An alternative estimate by Autor (2014), based on a different education grouping, suggests a college-HS premium of about 0.66 log points in 2010.
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- Subsidized Stafford Loans are loans to students who meet a financial needs test (based on family income and assets), with the interest paid by the government on behalf of borrowers while the student is in school. Interest payments after school are subsidized. In 2000, the total cumulative borrowing limit for subsidized loans over the four years of college was $17,125.
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- Unsubsidized Stafford Loans are loans available to students who either do not meet a financial needs test or do qualify, but need to supplement their subsidized loans. The interest on the unsubsidized Stafford loan cumulates when in school, it is added to the principal, and the student starts repaying her debt after graduation. In 2000, the cumulative unsubsidized Stafford loans limit over the four years of college was $23,000. For those students who do qualify for subsidized loans, $23,000 is the total limit of their Stafford loan (i.e. subsidized plus unsubsidized loans). Therefore we fix the total cumulative (subsidized and unsubsidized) Stafford debt limit bs +bu to $23,000. Repayment plans for Stafford loans typically impose fixed monthly amount for a loan term of up to 10 years. But extended repayment periods can be obtained.
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- Women Men Not in College In College Not in College In College Less than HS 3,021 N/A 3,658 N/A HS Graduate 3,229 N/A 3,820 N/A College Graduate 5,499 7,506 5,433 8,203 Average 4,157 4,737 Table G.1: Yearly inter-vivos transfers by gender and educational attainments, and by current college enrollment status of the child. Amounts are expressed in year 2000 dollars and include allowances. For youth living at home we also compute the implicit transfer corresponding to the value of rent, which is based on the estimated average rent paid by independent youth of the same age.
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