Age-Old Question: Full-ride at State School vs. Paying for Private/Public Ivy

College Search & Selection
1

I am quite conflicted with choosing a college. I would like to go into business administration or finance, with a possible minor in computer science. I got a full-ride at the University of Missouri-Kansas City (UMKC) and was named as a Trustees’ Scholar. The scholarship covers tuition for four years, room and board, meal plans, books/supplies, living stipends, and even free study-abroad opportunities. I am beyond grateful not only for the financial assistance, but also for the fantastic opportunity. Trustees’ Scholars get mentor help with local alumni and are invited to Trustees-only receptions which are perfect for networking. Sounds like an easy decision, right?

Well, I have also been accepted to NYU Stern with a pretty decent scholarship. The overall sticker cost is around $70-80K, which is insane, but I would be paying around $25-30K after the scholarship, grants, and work-study offers. NYU Stern is known for finance and having heavy connections around Wall Street. I am not exactly sure where I would like to work after college, but having an internship on my resume from one of the biggest business capitals certainly wouldn’t hurt.

Another one of my top choices is UC Berkeley. I received an early acceptance on Feb. 12, and I have been doing a lot of research since then. Needless to say, Cal has really grown on me. The cost for OOS is also expensive, but I received some money from gift aid and Regents. I will be visiting this school next week, but will not have time to visit NYU. However, I did spend four weeks at a musical theatre program with NYU Tisch last summer, so I have a pretty good idea of the environment.

I have made pro/con lists, and looked at the financial situation for each. My parents think the finances don’t matter as much as the fit, however I don’t know how guilty I would feel declining the full-ride. The costs of each school would be manageable. I love each of these schools and honestly wish I could go to all three. Or merge them together to create a “perfect” solution. Does anyone else feel this way? I would appreciate any feedback or advice!

2

That extra $100,000+ in savings could really come in handy, especially if you wanted to go to grad school and wanted your family to help pay for it.

So obviously from a financial standpoint, the free ride at UMKC gives it a huge leg up on NYU and Berkeley.

But if you are certain that your family can afford all three options and that they do not mind paying six figures above what the UMKC education would cost, then you can go through the usual “fit” checklist for each one and compare them using it:

  • Finances (already discussed)
  • Academic (majors, classes offered, curriculum style, class sizes and access to profs, etc.)
  • Social/Cultural (things to do, party scene, school spirit, etc.)
  • Environmental & Logistical (campus and city size, location and travel, weather, architecture, etc.)
  • Lifestyle (Dorms/Food)

If you can, visit them. There is also that “feels like home” fit factor that’s felt in your gut that is not as easy to quantify. That should also be a variable.

3

How do the costs at Cal and NYU compare?

4

If you’re considering Wall Street, then Stern has a big advantage over UMKC. Whether or not that advantage is worth the cost depends on a lot of things, and I don’t think anyone here can really tell you that.

5

@prezbucky Thank you for your advice. I wonder if the average earning potentials of each school should be a factor to be considered. For example, the average salary of a finance major from NYU would be more than the salary of a counterpart from a state school. Some of my peers talk about how college is an “investment” and how it could be worth the cost in the long-run. However, I am not sure if this just a generalized statement.

@mamaedefamilia Cal is about $2-3K more expensive. The living costs in Berkeley may be a bit cheaper than NYC, though.

6

There is a tremendous difference in the quality of these institutions. Cal is one of the finest universities around that just happens to be public. NYU is a highly respected institution. But UMKC might not crack the top 200. I know that when I review resumes, experience is the most important but that the undergraduate college can tip the balance on whether I call one person or another.

If your family can afford Cal or NYU Stern, do it.

7

SnapApp

Those jobs are not just handed out and you also must take into account standard of living when comparing salaries from different regions/cities and rural vs. urban areas, but yes – you could include “employment/earning potential”.

Bearing in mind, of course, that plenty of NYU grads are out of work and plenty of UMKC grads are successful. Averages are cute computed using data from many individuals, and individual results are based on the individual. It would be hard to say, for instance, that the students at NYU are not more capable, to begin with, than the students at UMKC… and that that is the leading cause for the “success” gap between the schools. (assuming there is one)

My point is, if you are successful in school and diligently manage your resume and set yourself up for success, you will be successful regardless of your alma mater… while granting that certain degrees have more cachet than others and some schools have better access to major firms.

8

If you’re thinking money, it’s UMKC, NYU, Cal
If you’re thinking overall prestige, it’s Cal, NYU, UMKC (at least for me; open to debate)
If you’re thinking location, it seems to be NYU, Cal, UMKC
ROI, I have no idea.

Three different configurations; I can see your dilemma.

Do you have any idea where you might want to live after college?

NY is fun, but only if you have money. Is the NYU grant aid need-based? If so, will you have disposable income so you can play a bit? Have you visited the NYU campus? It lacks a discrete campus, which could be a negative for some people.

Regarding money, if I am correct that NYU offers only need-based aid, the size of your grant suggests that your parents’ financial profile is somewhat modest. How much of a hardship will it be for them to come up with 30K per year? Will they have to take out loans? Will you?

Cal - Regents is merit-based, correct? The reason I ask is that merit is guaranteed, assuming you maintain whatever academic standard is required. Need-based aid can fluctuate.

If attending Cal or NYU involved taking out significant loans, I don’t think it’s worth it. If it could be sustained from income and savings, I would pick Cal over NYU. If loans/debt are part of the package, I would go for full ride at UMKC.

Kansas City, while not as urbane as Manhattan or the Bay Area, is hardly a hick town. I’m sure that there are internships and connections to be made there.

9

@mamaedefamilia, for b-school, Stern and Haas are equal, but the problem with Cal is that no freshman is automatically accepted in to Haas and entry in to Haas is competitive. Most Cal applicants don’t get in to Haas.

To the OP:
If you are definitely set on business and the extra cost of Stern isn’t a burden to your family (and you don’t have to take out big loans), I would choose Stern if I was in your shoes. Forget about prestige. You’ll get more opportunities at Stern.

If you are unsure about a business major, then it’s a different story.

10

Thank you everyone for your input. I greatly appreciate them!

@hebegebe The perspective from an employer is very helpful to know. I will keep this in mind.
@prezbucky That’s an excellent point. I plan on taking advantage of as many opportunities as possible regardless of which school I choose.
@mamaedefamilia I just looked again, and I was mistaken about the grants. I did not receive any grants from NYU. The aid I received was in the form of a Stern Scholarship plus $3,000 from work-study. I believe the scholarship is based on merit as well as aid. I have called NYU and they responded that my scholarships are renewable each year given that I am in good academic-standing. About loans, my parents have enough in their savings to not have to resort to taking out loans for four years.
@PurpleTitan The security factor of b-school at Stern is definitely something I’m thinking about. I’ve heard the Haas acceptance rate is around 50%, and that it isn’t too hard to get in if you keep your GPA up and write decent essays. I am definitely set on going into business, and my goal is to be able to work for a few years after undergrad, and (hopefully!) get my MBA at Wharton or Harvard. Not entirely sure if where I go for my undergrad will greatly affect my chances.

11

I still wouldn’t count on Haas as a sure thing. With Stern being just as good, that seems like the obvious choice to me.

Stern and Haas certainly would give you opportunities to get the work experience that is impressive to M7 b-schools.

12

Similar to what @hebegebe said, you have to consider the quality of the institution. For me, I think of name recognition. Since NYU is known for business, employers know that. UC Berkley is also well-known and prestigious. You should Google “where do most people who work on Wall Street (or a particular company that you may want to work for after college) graduate?” or “where do [insert college] alumni work?” and see what pops up. Also try to see where other Trustees’ Scholars end up working. That may give you an idea what kind of career you’ll set yourself up for in the future.

Don’t forget to consider student life. Will you like the people around you? Will you want to participate in student activities?

I’m also debating schools. I’m going into engineering, and one choice is highly-ranked overall with a great student culture, but the other is known for its engineering and has more STEM-related companies around it. When I think of the engineering school, I think of how it lines up with what I want to do in the future. So, if you’re the type of student who’s had all these business/entrepreneurial activities and classes leading up to college, and you definitely want to go into finance, then go somewhere that would support your goals in the end. From what you’ve said, and from what I know about the locations of each college, that seems to be NYU, but only you can make that final call.

Good luck!

13

You might want to take a look at this chart - NYU Stern has extremely strong placement on Wall Street, if you’re interested in that type of career http://www.wallstreetoasis.com/forums/wso-rankings-for-investment-banks-university-power-rankings-part-10-of-10

By contrast Haas, although an excellent school, is way down on the list.

14

@PurpleTitan That is true. I will be visiting Cal next week, so hopefully that will help me narrow down some factors.

@MysteryTwin12 Ah, yes! I almost forgot about student life! UMKC doesn’t have many clubs and is known as a “commuter school”. I will definitely keep this in mind as well. Thank you for your advice, and good luck with your decisions!

@midatlmom Thank you for the rankings chart. I have heard that Stern is a huge feeder school to Wall Street, but it’s helpful to compare it to other universities to get a better picture.

15

@midatlmom ,

Even though I agree that Stern is better for finance than Cal, I would view that list with some suspicion. For example, about 10% of MIT grads end up in Finance, but MIT doesn’t show up anywhere. The list is also very New York centric. I view “Wall Street” as being finance in general, and not a location, and this list ignores the money management centers of Boston and Connecticut.

16

If this won’t mean debt for your parents, then nyu Stern can’t be beat. For wall street or big firm placements, there’s simply no comparison. Those firms are very snobbish and don’t recruit at umkc. In terms of internships and outcomes the difference is huge - look at who comes to career fairs for instance.
Sometimes, free isn’t the best value - if someone gives you a car that’s likely to break down within 200 mules, and you have enough money to buy a new civic, buying the new civic makes more sense because it’ll take you further and will have better roi.

17

I am generally ALL FOR the free full rides. The lack of stress about money, the ‘big fish’ opportunities the schools provide you, the total lack of debt, and the ability to travel, do internships, etc. all summer rather than scraping around for work (any work) general win. In addition, You end up debt free for graduate school (and many if not most kids who are bright enough to get a full ride for undergrad have graduate school plans).
However, with your field if you/others think that ultimately the state school name will hinder you OR if you think you will truly be unhappy and not challenged with the free school, then I guess you have to do as you are…really balance, explore and consider.

My D had 3 full rides. One she took of the table immediately after visiting. She felt she would not be challenged and would simply not be happy there, in spite of all of the perks. The 2 others stayed on the table as ‘back ups’. Ultimately, she turned down an Ivy for one of the free rides as she felt not only would be be happier at the free school, but it would provide more opportunities while in college and would not hinder her goals for graduate school. Thus far, she has not at all regretted that choice. She also had a friend that turned down a full ride at a good school for an Ivy. She simply felt that she would ALWAYS regret not taking her spot at one of the best. So, some of this is not just on paper analysis but also your heart.

Sounds like you have a great attitude and see that you have an excellent problem to have. Congratulations. Let us know what you decide @SnapApp !

18

@MYOS1634 Thank you for your insight. I especially love your comparison of cars to ROI.

@ReturningFavor Glad to hear that your daughter had a positive experience with her decision. I have to decide if I would like to take the full-ride by the end of this week. However, I will also be visiting Cal this week, so hopefully that will help me narrow down my decision. Thanks for your input, and I will definitely keep you updated!