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Comment by seem_2211 | Hacker News Reader

I went to university in a country with a Gini coefficient of .35, and now live in a country with a Gini coefficient of .39 (See OECD link below)

The funny thing is, my student loan is one of the highest out of my American friend group† (although very normal amongst my NZ peers). Unlike the US, there was a lot less much in the way of financial aid/scholarships available, so sticker price was what people actually paid.

https://data.oecd.org/inequality/income-inequality.htm

† For people with undergraduate degrees

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Interesting. I knew NZ was pretty messed up but I didn't realise it was that bad.

The friend bit is anecdata.

Looks like NZ avg debt is $28k NZD [1]

USA is $29 USD [2]

So USA is 50% more expensive, on avg (NZDUSD 1.5). IMHO both are a disgrace, but that's another thing.

1: https://en.wikipedia.org/wiki/Student_loans_in_New_Zealand#S...

2: https://studentloanhero.com/student-loan-debt-statistics/

Yeah it's not great!

There's fairly decent financial aid available to cover your living costs if you're from a low income family, but that cuts off pretty quickly, and unlike the US, there isn't really a culture of paying for your children's education, so there's a lot of kids (like me) who grew up upper-middle class but didn't get much help through university.

Overall, I'd equate the USD = NZD as realtively equivalent, even though there is a currency difference. The average American is graduating into a job paying $51k USD, whereas NZ grads are often starting at $50-55k NZD.

[1] https://www.shrm.org/resourcesandtools/hr-topics/compensatio...

Sure, I used the FX rate in your case as you are paid USA wages but your debt was NZD.

Oh yeah, it's a great deal for me. What I meant was Americans who studied and then work in America end up paying roughly the same (when you take into account average earnings) as Kiwis who study and then stay in NZ.

$29k is not that much is it? That is about what I ended up with for my degree in Sweden where higher education is free but you borrow for living expenses. I repay it with about $100 per month for 25 years.

Perhaps the biggest difference is the interest rate which is government backed and around maybe 1-2%. According to first result on Google the interest rates on US student loans seems to be around 6-8%.

4.5% for US gov't subsidized loans.

Yes, but you get the 6-8% as a tax deduction if you can pay it as long as the loan is from the govt.

$29k is a decent chunk of change of you don't have a high paying job. It'll take you many years to pay off because of all your other expenses (housing, transportation, healthcare, food, clothing, etc.).

Yes, but think of it as someone else lent you money to be housed, fed, and clothed for four years while you earned no income. That’s going to cost money anywhere in the world, before a single book is purchased or lecture paid for.

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