Kelley vs. Smith

Hey guys, so it’s about that time that I decide on which school I’m going to attend in the fall and I just can’t make up my mind. I’m going to be a finance major so I’m between Indiana U’s Kelley school of business and UMD’s Smith school of business. I’m in state for UMD so, accounting for scholarships and all, I’ll have to pay about 32K for 4 years in total while at IU, I’ll have to pay roughly 95K for 4 years total. I really really really want to go to Kelley, and it is ranked higher than smith, however, I just don’t know if it’s worth the extra 60ish grand. So, what do y’all think? Where should I go?

Where do you want to work when you grow up? Chicago or MD? Would you scrimp to buy a used Corolla, or would you buy a new Lexus with a loan? What is your personality?

Go where your spirit will soar, and where the opportunities for summer, term, and graduation jobs will make you happiest.

The extra $15k per year seems like a lot, but over a lifetime, the value of setting a true course is worth much more than that.

If you can’t afford to do what makes you happiest, then do what you can afford.

Honestly, I would love to work in New York but I would be alright with either DC or Chicago. Of course, a fancy schmancy car would be nice but I have no problem settling for now and for soon free college if it pays off later on. I just feel like I would enjoy school and actually want to learn and study so much more at Kelley…

No one can tell you what to do. I think you should follow your heart, to the degree you can afford to do so, as the vagaries of life will have a bigger impact on you than $60k in debt.

Where you are, physically, will help to set your course. At UI, there will likely be a more midwest bias. At UMD, there will be more of a DC/Mid-Atlantic bias. Of course, you can move anywhere for work, and the reputation will help with that, but you will start to grow connections that will be somewhat geographically-based.

I’d go to UMD both for the price and for its location in the northeast.

If you actually won’t “enjoy school and actually want to learn and study so much more at Kelley…” you have much bigger issues than deciding between 2 very good schools. I can’t find the USNWR undergrad business school rankings for Kelley but the Smith program is ranked 21st nationally. Since I don’t see Kelley appearing in the top 10 rankings I really doubt that there is any significant difference in quality between the 2 if in fact the UI program is ranked at 11-20 and certainly not $60k difference.

I get that kids in most states are dismissive of their own state school’s quality but you will soon be an adult and you should begin to realize that spending the extra $60k will not result in a higher salary or any tangible payback. Open your mind and do the analysis as a business person would; not a high school kid.

I agree that Smith will serve you easily as well as Kelley.

@murlykin1‌ You say that as an OOS at IU with scholarships you will have to pay roughly $95000 over 4 years. How is that possible? Indiana University costs $47000 per year and I believe the largest merit scholarship they offer is $12000 per year for exceptional credentials. They havent released financial need based decisions yet. SO even if you received the maximum merit aid your OOS costs would be $35000 per year, or $140000 (not $95000) over 4 years. IU would cost $108,000 more than UofMaryland. I dont think Kelley school of business is worth paying that much more than the Smith business school. I say stay with the Terps!

It’s hard to ignore the finances on this one. With 32K in costs over 4 years, you’ll find it much easier to find a nice apartment and buy a car after you graduate. You’ll be saving for a house much sooner probably.

If you’re concerned about going to college with your high school classmates, forget about it. UMD is large enough that my S rarely saw a classmate more than to nod to them or bump into them at a party. College is about making new friends, yes, but UMD is not going to be an obstacle to that. S was in the honors program, as you probably are, and he found those first two years in his honors dorms the two best years of his life, until he got his own house with those friends from the dorm. None of these kids had anything to do with his high school and this introverted boy made a ton of friends at UMD. He was not in Smith but in Natural Sciences, and he got a good education and had a good time at UMD.

@rgr717, IU has bigger scholarships than that and the OP could have outside scholarships.

I don’t see that it is a good decision to pay 60k extra for an undergrad business degree. If that is debt then it should be out of the question, you couldn’t make the payments. I hope your parents aren’t foolish enough to take out the loans for you. If they have it laying around and reserved for your school, sure they can indulge your whims, but undergrad business is not rocket science and isn’t going to be that different. The grass is always greener between one state school and another it always seems.

If debt at minimum:

Loan Balance: $60,000.00
Loan Interest Rate: 6.80%
Loan Fees: 0.00%
Loan Term: 10 years

Monthly Loan Payment: $690.48
Number of Payments: 120

Cumulative Payments: $82,857.94
Total Interest Paid: $22,857.94

It is estimated that you will need an annual salary of at least $82,857.60 to be able to afford to repay this loan.

Joblue, what I meant by that was the IU has been my dream school ever since I started looking at colleges, where as umd I had and still don’t really have a desire to go to. And BrownParent, I am definitely not taking any loans.

So you just made up this statement? Really?

Sorry, @murlykin1 but dream schools are a childish notion and you don’t seem to have any kind of sound reasons for wanting to go there. If you really are smart enough to be admitted to Kelley and Smith you will be smart enough to forget the entire notion of a “dream” school and focus on a dream life. Do you intend to actually be in the business world? You won’t get far thinking like this.

What do your parents say? Surely, they won’t support spending that kind of money just because you “really, really, really” want to go to IU. Do you realize how many out of state kids would kill to be admitted directly to the Smith school, which may well outrank Kelley anyway (although undergraduate departmental rankings are usually pretty meaningless anyway, IMO)?

Ask your parents to save it for your MBA, that’s a much better value, even the interest would help you. Or ask if you can borrow it interest free.

A big Kelley advocate here. But starting work life 60 additional K in debt makes no sense. Save the money, go instate, kick butt, then get a Kelley Direct MBA (top ranked) if you want. Costs the same amount of money as just going to Kelley undergrad.

You talk about a “dream school”? Racking up a huge debt or needlessly paying too much is a “nightmare”!

Would the 60K be DEBT - and if so, would it be 60K debt including federal loans, or 60K for your parents, on top of your own loans-, OR would it come from a college fund or other money your parents have readily available, ie., neither you nor them would borrow more than the federal loans?

Thanks everyone for the replies and the advice. I decided to got to UMD for a few reasons. For one, its a hell of a lot cheaper and there’s a lot my family and I can do with that money, ie. study abroad, grad school, etc. Also its really convenient for me since it is very close to my home and my family and I also thought that it just wasn’t worth the many more grand for a possibly slightly better education…

Unless your family can afford the 60K difference without breaking a sweat, I’d go for UMD. I also think UMD has more of an alumni base on the east coast which could be helpful.

Kelley School of Business is well worth your initial tuition and I would choose it over Smith. Specifically for investment banking, Kelley is considered a semi-target and some may even argue it is a target school. Smith on the other hand is a non-target(although UBS recently started recruiting there). Kelley is highly recognized in Chicago and has several alumni in NYC. Unless you want to work near D.C., I would definitely consider Kelley over Smith.