<p>Either or both; depends on the field.</p>
<p>What types of careers are you considering? And when you say “Ivy” is that a short-cut for just saying a prestigious grad program? Because at the grad level the concept of “ivy” is a misnomer. If you’re choosing an MBA, go to Northwestern over Yale (non-ivy over the Ivy). If it’s law school, go to Stanford over Cornell (all things being equal… but don’t pass up a full ride at Cornell Law school unless the money is irrelevant to your future lifestyle).</p>
<p>But don’t sacrifice your undergrad education to save money for grad school unless you have a very clear career path in mind. Many people don’t go to grad school. Many go for fully funded doctorates (i.e. costs them nothing). Many have employers pay all or part of professional school (MBA, Law, journalism, Master’s in teaching). Many work for a few years to save money and then a combination of aid, savings, and loans can put them through a top grad program. Or have their employers pay the whole tab if they agree to return after finishing the degree.</p>
<p>There are kids at Harvard Business School who went to undergrad schools you never heard of (not many, but a few). There are kids at Yale Law School who went to no-name undergrad (a few, but even fewer than at HBS since Yale law school is so small). There are kids at the top med schools in the country from every sort of undergrad.</p>
<p>So there are ample datapoints that you can get to a top grad program from anywhere. But it is also true that the top grad programs seem disproportionately dominated by kids who graduated from top public and private U’s as undergrads. It is hard to get into a top grad program in Math, for example, coming out a college that is not known as a math powerhouse. (it can be done, but less likely than a kid coming out of Princeton or Berkeley, since the Math professors at the top grad programs are usually quite familiar with the training and exposure you get at the top undergrad schools in math, and not that familiar with the training at lesser schools.)</p>
<p>So does any of this matter? In some fields, where you went to grad school matters a great deal (law, MBA, academia) for certain types of employers. In other fields it doesn’t matter whatsoever (teaching, counseling). In some fields it matters some of the time and not in others. </p>
<p>I would not encourage a young person to pursue a PhD in an academic discipline from a third tier institution. The likelihood that you’d get any quality post-doc experiences, or find a tenure track job in your field is slim. I would not encourage a kid who wanted to be a social worker to take on gobs of debt at either the undergrad or grad level. And if you plan to get an MBA it is worth going for broke at the grad level (I mean that facetiously of course) because in up economies, down economies, or flat economies, an MBA from Wharton or Harvard or Stanford or Northwestern will hold its value better than an MBA from U. New Haven or U. Phoenix. But for public U’s- Michigan, Virginia, UNC, U Texas-- all have very highly regarded MBA programs. But unless I needed to be in Ann Arbor for family or medical reasons… I would take on debt for an MBA from Wharton over Michigan.</p>
<p>YMMV.</p>