How come people in USA seems to be heavily in debt due to student loans but not in SG?

[Roughice]

Public Unis in USA are also very expensive? Or is many americans ownself backside itchy go private Uni? Or are they just bad at managing money?

 

[Akky85]

Public Unis in USA are also very expensive? Or is many americans ownself backside itchy go private Uni? Or are they just bad at managing money?

They almost everything is credit card.

Even things like a new bread toaster or the new chair grandpa wants.

 

[coyote]

Public Unis in USA are also very expensive? Or is many americans ownself backside itchy go private Uni? Or are they just bad at managing money?

I also wanted to know.

 

[wwenze]

Their uni costs roughly twice of NUS/NTU, or roughly same after factoring in PPP

The difference is, when they take loan it's news, when we take loan it's expected.

 

[RedEyesFan]

 

[Hyruga]

Aiya they earn GAO GAO lei

 

[coyote]

Aiya they earn GAO GAO lei

Oh... They have very heavy federal and state taxes ... So take home pay is much lesser than Singapore. So if the parents take home pay is less, the kids have to take on more study loans. In fact, I'm under the impression many kids pay for their school fees by taking study loans?

 

[Crooni]

it's like hdb/insurance/etc

now education worldwide is very focused on profits. so got loan = increase price = increase loan = increase price

sg still got subsidized rates for sinkies

also think by culture we're still supported by parents during that phase compared to western countries

 

[need2hyde]

Lai Lai, I help you ask ChatGPT:

Great question — the difference in student loan debt between the USA and Singapore boils down to a mix of policy, education financing models, and cultural factors.


Here’s a breakdown of why Americans tend to have more student debt than Singaporeans:

---

United States: Why Student Debt Is So High​

1. High Tuition Fees
   • University education in the U.S. is extremely expensive. Private universities can charge USD $40,000–$80,000 a year, and even public universities can cost $10,000–$30,000 annually for in-state students.
2. Decentralized Education Funding
   • There's no nationwide tuition cap. Universities set their own fees, and states have been reducing subsidies over the years, pushing more cost to students.
3. Private and Federal Loans
   • Many students take out federal loans, and some also rely on private loans, which may have high interest rates and less flexible repayment options.
4. Low Upfront Subsidies
   • Scholarships and grants exist but are competitive. Most middle-class students still need loans to attend university.
5. Cultural Norms
   • It’s considered normal in the U.S. to take on debt for college as an “investment in the future,” even if the return isn’t guaranteed.

---

Singapore: Why Student Debt Is More Manageable​

1. Subsidized Tuition
   • The Singapore government heavily subsidizes tuition at public universities and polytechnics. Citizens receive generous tuition grants that reduce the total cost significantly.
2. CPF Education Scheme
   • Students can borrow from their parents’ CPF (retirement savings) to pay for university, interest-free during the study period, and repay it later with low interest.
3. Government Loans With Fair Terms
   • Loans from MOE (Ministry of Education) or banks like DBS come with low interest rates and repayment starts only after graduation, often capped at 20 years.
4. Lower Tuition Fees
   • Even without subsidies, Singapore’s tuition fees are generally lower. For example, an undergraduate course at NUS might cost SGD $8,000–$9,000/year for locals after subsidies.
5. Smaller Income Gaps
   • The wage premium from getting a degree is still strong in Singapore, making it easier to pay off loans. Also, the job market for graduates is generally more stable.
6. Cultural Emphasis on Financial Prudence
   • There is a strong culture of avoiding debt unless necessary, reinforced by government policy and societal expectations.

---

Summary Table​

Factor	USA	Singapore
Average Annual Tuition	USD $10k–$80k	SGD $8k–$9k (after subsidy)
Student Loan Size	Often > USD $30k–$100k	Often < SGD $20k
Interest Rate	Up to 6.5% or higher	2.5%–5% (or CPF-linked)
Repayment Start	6 months after graduation	After graduation (flexible terms)
Government Subsidies	Limited	Significant for locals
Cultural Attitude to Debt	Accepting of debt	Conservative, debt-averse

---

If you're interested, I can also show how this compares to other countries like the UK or Australia.

 

[NintendoSwitch]

Public Unis in USA are also very expensive? Or is many americans ownself backside itchy go private Uni? Or are they just bad at managing money?

Yet. You left out the yet. They hear you and are working on it.

 

[Scarlet Tea]

Who say sg don’t have? I had to bank loan for my degree. Needed to juggle full time job and part time study

 

[wwenze]

it's like hdb/insurance/etc

now education worldwide is focused on profits. so got loan = increase price = increase loan = increase price

sg still got subsidized rates for sinkies

Need better phrasing to avoid misunderstanding

NUS $38,000 for 4 year degree is *AFTER* government subsidy for citizens.

Unsubsidized is 4x that amount

 

[addict951]

They almost everything is credit card.

Even things like a new bread toaster or the new chair grandpa wants.

Not only just using cc. Using cc is perfectly fine 1.
Those wif income one they like to roll over. As in pay minimum nia, then they dun mind pay interest. Something which edmwers dun do.
If yall go join those fb groups discuss personal finance one can see a lot like that sia.
Like for example: if total hh income ish $15K, then they might have cc debt of $8K monthly. Like wtf. A lot of them ask how to reduce such debts. Then when asked what they spend on they say they can’t tell.
Srs sia, really got ppl so clueless about money 1. 🫢

 

[elephantscannotfly]

In Singapore, our education is heavily subsidised.
Without the subsidies, you see the amount, you will not even post here already.

The good thing about our govt is they place a huge emphasis on education.
So thank your lucky stars.

 

[forests_gump]

Why ts neber point out, similarly many S'pore property owner (oops leasehold) are heavily laden with debt (30yrs) ?!?

Ts also a 65% ?!?

 

[wwenze]

The good thing about our govt is they place a huge emphasis on education.
So thank your lucky stars.

 

[cosmothecat]

Char siews in SG have it easy

Parents paid for kids' university expenses

 

[Roughice]

Not only just using cc. Using cc is perfectly fine 1.
Those wif income one they like to roll over. As in pay minimum nia, then they dun mind pay interest. Something which edmwers dun do.
If yall go join those fb groups discuss personal finance one can see a lot like that sia.
Like for example: if total hh income ish $15K, then they might have cc debt of $8K monthly. Like wtf. A lot of them ask how to reduce such debts. Then when asked what they spend on they say they can’t tell.
Srs sia, really got ppl so clueless about money 1. 🫢

Isn't it common knowledge that you should clear your CC balance at the end of every month? 28% interest per annum doesn't sound scary enough?

 

[coyote]

Lai Lai, I help you ask ChatGPT:

Great question — the difference in student loan debt between the USA and Singapore boils down to a mix of policy, education financing models, and cultural factors.


Here’s a breakdown of why Americans tend to have more student debt than Singaporeans:

---

United States: Why Student Debt Is So High​

1. High Tuition Fees
   • University education in the U.S. is extremely expensive. Private universities can charge USD $40,000–$80,000 a year, and even public universities can cost $10,000–$30,000 annually for in-state students.
2. Decentralized Education Funding
   • There's no nationwide tuition cap. Universities set their own fees, and states have been reducing subsidies over the years, pushing more cost to students.
3. Private and Federal Loans
   • Many students take out federal loans, and some also rely on private loans, which may have high interest rates and less flexible repayment options.
4. Low Upfront Subsidies
   • Scholarships and grants exist but are competitive. Most middle-class students still need loans to attend university.
5. Cultural Norms
   • It’s considered normal in the U.S. to take on debt for college as an “investment in the future,” even if the return isn’t guaranteed.

---

Singapore: Why Student Debt Is More Manageable​

1. Subsidized Tuition
   • The Singapore government heavily subsidizes tuition at public universities and polytechnics. Citizens receive generous tuition grants that reduce the total cost significantly.
2. CPF Education Scheme
   • Students can borrow from their parents’ CPF (retirement savings) to pay for university, interest-free during the study period, and repay it later with low interest.
3. Government Loans With Fair Terms
   • Loans from MOE (Ministry of Education) or banks like DBS come with low interest rates and repayment starts only after graduation, often capped at 20 years.
4. Lower Tuition Fees
   • Even without subsidies, Singapore’s tuition fees are generally lower. For example, an undergraduate course at NUS might cost SGD $8,000–$9,000/year for locals after subsidies.
5. Smaller Income Gaps
   • The wage premium from getting a degree is still strong in Singapore, making it easier to pay off loans. Also, the job market for graduates is generally more stable.
6. Cultural Emphasis on Financial Prudence
   • There is a strong culture of avoiding debt unless necessary, reinforced by government policy and societal expectations.

---

Summary Table​

Factor	USA	Singapore
Average Annual Tuition	USD $10k–$80k	SGD $8k–$9k (after subsidy)
Student Loan Size	Often > USD $30k–$100k	Often < SGD $20k
Interest Rate	Up to 6.5% or higher	2.5%–5% (or CPF-linked)
Repayment Start	6 months after graduation	After graduation (flexible terms)
Government Subsidies	Limited	Significant for locals
Cultural Attitude to Debt	Accepting of debt	Conservative, debt-averse

---

If you're interested, I can also show how this compares to other countries like the UK or Australia.

Wow! Chatgpt singing all praises for Singapore!!! Better ask my kids to study harder to gain entries to local universities...

 

[Akky85]

Not only just using cc. Using cc is perfectly fine 1.
Those wif income one they like to roll over. As in pay minimum nia, then they dun mind pay interest. Something which edmwers dun do.
If yall go join those fb groups discuss personal finance one can see a lot like that sia.
Like for example: if total hh income ish $15K, then they might have cc debt of $8K monthly. Like wtf. A lot of them ask how to reduce such debts. Then when asked what they spend on they say they can’t tell.
Srs sia, really got ppl so clueless about money 1. 🫢

To us the CC is fine, as long as you keep in check. Their culture is wait for bill to come then see how much spent.

Meanwhile, whatever there's ''needed'', spend lor, control for what? End up ''still have to buy'' anyway.