Is USC(Accounting) worth the cost/debt?

Colleges and Universities A-Z University of Southern California
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<p>Don't know if this is the right place to post something like this, but I figured I'd go for it anyway. I've recently been accepted to USC as a transfer student coming from Cal Poly Pomona, and plan on majoring in Accounting. My question is, and this forum may have some serious bias but that's fine, is USC really worth the extra cost I would have to deal with. From USC I received no aid, whereas at CPP my cost is under 25k a year, meaning there is about a 40,000 dollar difference. Over the course of 2 and a half years I would need to complete my undergraduate degree it would mean about 100k more than I'll spend at CPP.</p>

<p>While my family has investments and an income over 200k(which is still alot, but not nearly as much as it sounds after taxes), 65k a year is an extremely high amount to pay considering the fact that my sister is starting college this fall, we help support my grandmother, and that my dad is now 65. So is going to USC and having my parents pay probably 30-40k more than they would otherwise out of pocket, while also taking out loans up to 70k worth it(that would all be costs ON TOP of what I would be paying at CPP), or should I wait to think about USC until graduate school. I am not too confident in the business school at Cal Poly Pomona, but it is accredited and from everything I hear, it is the grad school you go to that matters, which I will have to do if I want to sit for the CPA. However, the value of an ability to obtain internships and the right connections still needs to be factored in. I guess there's also some confusion on my part, as to whether most accounting majors get hired to a firm out of their undergraduate degree or after a masters. </p>

<p>Anyways, I'm stressed and don't know what to do. Naturally, as an accounting/business major, I understand the trouble one can get into if seriously in debt. I won't let others' opinions be the deciding factor, but they may help me in making a decision, so anything is helpful. Thanks.</p>

<p>Side note: I was also accepted to Chapman with a 25k scholarship, which I was hoping for even half that at USC. No Luck=p</p>

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<p>You should absolutely, absolutely appeal your lack of an aid package - having parents near/at retirement age, supporting a grandmother, and having a younger sibling starting college… you are absolutely right that your folks don’t make as much money as it sounds like. I see no reason why, so long as you go on offense and make the case for yourself, that you can’t get something decent out of the university. You sound like the kind of student USC should WANT to have.</p>

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<p>I’d take a closer look at Chapman. Reach out to some alumni at the Big 4 and see what response you get.</p>

<p>100k is A LOT of debt to work off.</p>

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<p>@uscalum05 I have not yet appealed but have considered doing so. However, my mother and I called in yesterday and asked specifically about those things. They stated they were all calculated in to my financial aid package, yet still nothing. Well I shouldn’t say nothing. $6500 in loans was offered, only half of which was subsidized. So basically nothing. </p>

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<p>Stay at Cal Poly. Do not go to Chapman and reserve the $100k for B-school. Keep your parents out of it.</p>

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<p>Appealing won’t work, and I wish people wouldn’t lead families down a dead end and give kids false hope. Nearing retirement age, supporting grandmother - neither of those mean anything that can be put on the forms for this or past years. He is currently working and what if grandma or sibling lives with you, are you gonna have great documentation that their cereal or the utilities they use cost you x amount? Everyone has expenses and situations that don’t do anything to change aid, that is reality. In the real financial aid world of USC the income they have and any house equity they have kills chance for aid. They are middle people, and they pay. Only the very low/poor are getting the help, that is the reality of aid. Middle class need not apply.</p>

<p>And when you call, Dr. Phil doesn’t answer the phone. You can escalate and escalate, but you are still just one of the thousands calling in. Again, if you are at the bottom you can expect some help, if in the middle you can only be thankful they let you in the door. This may sound snarky, but not meant to be, it’s just how it is.</p>

<p>Stay at CPP and put away some of that savings toward your future. Let your parents enjoy their life, not worth their debt and your guilt.</p>

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<p>From my understanding, most accounting majors invest their time after getting their undergraduate degree getting ready for the CPA which in no way needs a masters. I am not implying you shouldn’t go to graduate school, but you do not need a masters for the CPA and most students don’t go that way to get the CPA, they just prepare for it via outside prep (classes, their job may offer prep, on their own, etc). There are credit requirements for the CPA that are different than what a school requires to graduate so you should check into that with your advisor. It’s not that you need more accounting classes, you literally just need more credits in order to take the CPA. Other states require a certain amount of credit units so they had to adjust California to be in sync with the others. Please look into this so you can make a plan. As to your original question, I think that is a really personal choice. Some people are really comfortable taking on the debt because they have other investments that will pay off later (house or business sale, etc). Others, it will change their lifestyle. If you are doing an MBA program or not influences the finances, so you just have to sit down with your parents and really go through things. What is wrong with Chapman if you are looking for a private school/connections? I truly believe no one compares to USC for the alumni network, but they are offering you a lot of money - make an appt with their business school advisor - it is nice to be where someone wants you and they obviously do. Good luck!</p>

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<p>I’ve heard of Cal Poly but until a couple of years ago I thought Chapman was like the University of Phoenix. I’ve leaned otherwise since then. Do not pay private school dollars unless you have the resources to pay, you get a lot of financial aid, or the school has brand, national name recognition. Even then, however, you cannot saddle yourself with heavy debt at the undergraduate level, regardless of school. None of it is dischargeable in bankruptcy. Be careful here and don’t get buyer’s remorse.</p>

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<p>Chapman is trying hard to compete with USC. That was clear when we visited Preview Day. So it is pushing to make sure students have similar resources in terms of jobs and connections. Very intimate, hands-on school. And the people we met were very nice. I think you should visit. I know of other parents who chose it when they found they got more FinAid from Chapman. It just wasn’t for us and USC’s campus fit our student’s lifestyle and cultural background a bit better.</p>

<p>Honestly - for the most part any undergraduate degree (as long as it’s a relatively good school) will serve you well. Graduate school may be a different equation in terms of perceived prestige and marketability upon graduation.</p>

<p>But having said that - I don’t know what your parents do but USC has probably figured that if there is no cash flow to allow for full payment, that they’ll tap retirement (not a good option according to my discussions with USC-FA) or take out a Parent Plus Loan from the government. One little known fact, If they are in public service, teach, or work for a nonprofit, the loan balances can be forgiven after 10 years of on-time payments.</p>

<p>But the $200,000+ salary puts the family (even after taxes) close to (if not within) the 1% of the country category. People making significantly less than that are finding themselves in the little or no aid boat at USC as well. Put it another way - students whose parents make minimum wage have a household income of $14,000 for a single earner and $28,000 for two earners working 37.5 hours a week at $7.25/hour. Those people have “no” investments.</p>

<p>So in USC’s eyes it isn’t a matter of whether a family with $200,000 in income can’t make the payments. It’s a matter of “won’t” make the payments (or cash in investments or take out a loan).</p>

<p>Hence a school like Chapman which knows that offers renewable merit aid automatic based on factors such as grades and scores whereas USC makes it a competition and puts everyone else on aid based on family finances.</p>

<p>In their eyes - there are enough people who want to be on USC’s campus to not have to change the formula.</p>

<p>Hope that helps. Good luck with your decision. It’s a tough one for sure!</p>

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<p>Thank you everybody for your advice I’ve actually gotten more responses than I was expecting. Still not sure what to do really, but I’ve texted a friend of a friend(who I have met a few times but don’t know too well) to tell her father my situation and see what he thinks I should do. He’s been a partner at PwC for years, is on the board for the Los Angeles Chamber of Commerce, etc. I know he’ll talk to people that his daughter recommends if they have over a 3.5(which I definitely have), but unfortunately I only know her because she goes to the same school as my high school friend, so I don’t know if that could happen. Anyways, hoping that someone with his experience might be helpful, in addition to what I have received from all of you. </p>

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<p>My best friend and USC roomie’s pop was a UCLA grad and partner at Cooper’s before it merged with PW, and was very proud to be able to send his boy to USC, a real mark of a successful UCLA grad. I’m amending my advice just a bit. If you are NOT going to grad school, and are graduating from Marshall, then USC might be a good investment, BUT I’d rather YOU borrow the money and let your pop not worry about retirement, unless, of course, he can afford it. Then you won’t regret not going to USC when you are my age. Otherwise, get your MBA at USC, which, btw, would not be guaranteed as it’s hard to get into. Good luck.</p>

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<p>@seattletw or anyone else who wants to chime in, I have done some calculations and if I live at home, which is about a 25 minute commute to USC, it will cost me roughly $75,000 more than I would pay at Cal Poly Pomona(where I would be living on/within 5 minutes of campus) over the course of 2 and a half years. However, my Dad’s boss is a fan of USC, and upon hearing that I got in, offered a $7000 a year scholarship. So that brings my/my parents on top of Cal Poly Pomona cost to lets say about $55-60,000. </p>

<p>My parents were planning on taking out a home equity line of credit(have a very small mortgage from my dad buying the house in the 80’s that has now been rebuilt and is worth, well, alot) to cover whatever extra expense I have, and then sell off some various property to pay that off that later. The reason for doing this is because it would be the lowest interest rate we could get, and would be interest only payments until my parents pay off the principal later on. There’s no way my dad can pay via salary when there are my costs at USC and sister’s cost of attendance will be around 30k. </p>

<p>His boss has also offered to make a loan to us through his company to help us, which my parents will be discussing with them soon, but I would assume that their reason for offering this is to give us a lower interest rate than we can get from the bank, which when we went to the bank to talk seemed like we could probably get 3.75% for interest only payments. </p>

<p>Anyways so, similar to my original post, but with revised numbers/situation, is getting an undergraduate Business degree from Marshall or an Accounting degree from Leventhal(while having to live at home which is definitely not preferred but will be alright now that I’ve matured quite a bit and actually get along with my parents) worth the extra $60,000 which would likely be split close to evenly with my parents, probably leaving me with between 30-40k in loans. My parents would pay off the entire principal when they sell a property to get rid of the loan, and then I’d be paying them back whatever I owe but with no interest. </p>

<p>So for me it’s not a matter of can it be done, but more so should it be done? Am I better off having the USC brand name and connections I’ll make there while an undergrad, or should I try to save the money for some sort of grad school whether that means a masters in accounting or mba(which I am likely to get one or possibly even both depending upon what lies ahead, but the mba would be later on. one thing to note is that if I go to USC for an undergraduate degree it is unlikely I could afford to get an MAcc from there. Taking classes at a JC might also be an option, but I’d really want to see how employers feel about that route)</p>

<p>My neighbor says Deloitte paid for her masters in taxation at USC, but is this still done? In the mean time, I’ve talked to USC and they said I can go ahead and reserve a spot by paying my deposit, but if I decide it’s not going to work out financially, I can back out and will lose my deposit but will not be held financially responsible for anything else.</p>

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<p>Last question first, yes, companies still pay for MBAs.</p>

<p>Second, the USC brand is bankable and will open doors to the companies that pay for MBAs so you might be able to get two degrees yet.</p>

<p>Third, congrats on the scholarship and loan options, which means a third party is confident enough in you to make tangible investments. $30,000 for your parents is reasonable, but you should shoulder the balance. And you should pay them back. Well done for reaching out for creative ways to finance your education.</p>

<p>That said, I believe you should go and don’t look back. Once you’ve settled in, try living by campus and taking a part time job if you can. In your situation, USC will be your next job, so stay focused and do not waste time partying, especially since you have another benefactor other than your parents investing in your future. Now get cracking :-)</p>

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<p>You have come up with an equation with results similar to those that are deciding between UCLA for 5 years (roughly 35k x 5 = $175k) versus USC for 4 (roughly $60 x 4 = $240k) Diff is 65k give or take. Many do the same evaluation and go USC for the difference. In this eval, people also factor in that student can be earning money in 4 years versus being in school that fifth year, so it may be less of a difference. A lot of CA kids have parents sitting on a huge bank account (in the house equity) which is what I suspected was the case from your original post, so the debt that may sound huge to others really isn’t in the scheme of things. I think your decision is made?!</p>

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USC charges too much!!..and it’s sad that a middle class families have to mortgage their life for college while parents shame on these college administrators and educators for letting it get to this. They know parents will find a way and pay even if it means they will spend their retirement doing it. It’s a sad sad situation…
shame on them…

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Actually for Accounting in California I would go to CSUN or USC. UCLA does not have accounting, only economics. CSUN is a very well-known for its accounting major.

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My opinion is Chapman. SC is too expensive. We had the same experience with financial aid there. Two kids in college, and SC came in $15,000 per year more expensive than 4 other private schools.

Chapman ranks 60 in Bloomberg b school rank. USC around 30. I don’t see Pomona ranked at all. Your cost at Chapman would be around $35,000, so that’s a lot better than USC at $60,000+. Living at home seems like a big sacrifice. I think private schools do a better job of helping their grads get jobs. And the change from a Cal State will be noticeable. Better advising, smaller classes, more personal experience. You can take the exam after you get your BS.

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Since the OP was a potential transfer student, and the first post is from June, 2014, I assume that @Guywhoflys already made a decision in time for the fall semester. Perhaps he’ll (assuming a “he” from the user name) check in to let us know where he landed.

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Ha you’re right. I just noticed the 4-9-15 response and didn’t see the OP date. Thanks.