@cptofthehouse My degree would be Economics, with another major or minor mixed in. Possibly STEM related. Northwestern’s economics major fairs the students extremely well. I guess I just need to know if, lets say, an 85K salary, with obvious promotions, would be able to afford the debt.
@privatebanker I know you’ve commented on the quality of programs at each of these schools. But what do you think in terms of the 50K debt at NU, and if it could be reasonably managed through the career path of a Banker or Consultant (MBB).
Sorry if I missed this but what is it about Kelley or IU that you don’t like? You seem do be doing well and have a great gig for the summer, to boot.
I don’t think it sounds odd OP, I think you are in a good situation currently, and hate to see anyone take on $50K debt when they might not have to.
I understand what you are looking at career wise and numbers wise, I went to Kellogg and have worked in consulting for 25 years. With lots of ibankers too.
What are those relative numbers?
Are your parents going to cosign loans and/or take out parent plus loans? You can only take out $6,500 next year, then $7,500 each of junior and senior years—so you have a gap of $28.5K that your parents will have to take out/cosign.
@suzy100 Without writing a paragraph, my desire to transfer is a mix of a few things. I know I have a shot at accomplishing my career choice at IU, but I’m tired of being the underdog. I went to a horrible public school system, and I’m ready to be at a point where I can be in a place where getting a career in banking or consulting isn’t a radical success for the school, but commonality, like it is at NU. I also am not challenged at IU, so would love the quarter system at NU. And just love everything else at NU, the students, the diversity of thought, the proximity to chicago, the facilities.
@Mwfan1921 I’m sorry, I hope you didn’t see that post as me trying to educate you, just wanted to give full information. I understand the struggle with the 50k, I guess I’m just absolutely terrified with turning down the opportunity to go to NU, then regreting it the rest of my life. It has always been my dream, and now that I’m finally here, I just want to do it. I can’t ignore the financial aspect however. And I believe if you just look at LinkedIn employees at MBB/Bulge-bracket banks, the numbers for consulting are about 5:2 Northwestern, and like 3:1 Northwestern in banking.
@Mwfan1921 I don’t quite know in terms of my parents. They can afford NU for me, but don’t believe in the gap between IU and NU. So they would back the loans, but with the full expectation that I pay everything myself in the end. (Atleast to my knowledge so far, we’ve only known about my acceptances for about 3 days.)
50k for all four years, guaranteed banking or consulting career with longevity. That’s easily managed.
But don’t switch to med school or casually throw law school or a Duke mba on top of that pile. Then it’s an issue.
I do not believe that the average Econ major from NW is getting $80k year out of school. More like $50-$60k with outliers that have contacts already and the very few exceptional. An NW Econ major is not any hot commodity. Plenty of Econ major. STEM Or directed business study from elite undergrad business school like Wharton or maybe Kelley, I can see. Econ major not quite the general lib arts major but there are plenty out there
This is not a good way to get at that number OP.
Regardless, I get the allure of NU. It’s clear you are smart and accomplished. I am playing devil’s advocate and want you to think this fully through. Why not be the top guy at Kelley?
Taking on that debt is a big decision. Sure, you might get one of your target jobs and easily be able to pay that payment for 10 years, but you may have had the same outcome from Kelley. And life can get in the way of all these plans…10 years is a long time.
If you feel you would forever regret not going to NU, and your parents can and will take out the $28.5K in debt without severely impacting their lifestyle then consider it. It’s you and your parents decision, but as a parent, I would hold your feet to the fire to give me REAL data to make this decision…not LinkedIn searches, not hearsay.
I’m sure NW gives numbers of what their Econ grads are getting upon graduation. As does Kelley. Look them up.
@cptofthehouse I don’t think anyone said the average NU Econ major is earning 80k. But I’d take a look at Banking and Investment Banking salaries if you want a better glance at the figures. Not all Econ majors want to go into these two sectors, and on top of that, it is a competitive field. And I guess I’d also have to disagree with you saying NU Econ majors are not a hot commodity. From what I can tell, it seems like they truly are, atleast from my experience with the recruitment Kelley gets. I could be definitely wrong, maybe @privatebanker can explain better than me.
You have to make sure not to include those with MBAs or other advanced degrees in the data set. I don’t know where to get data for people with ug degree only in those jobs.
But your parents are in secure enough shape that having to take those loans for/with you is not going to hurt them financially? They can give you a financial hand while getting started in NYC or wherever? They are not financially challenged? That’s important.
@Mwfan1921 I know, I’m just trying to arrive at the best conclusions I can with what I have. I plan on doing a walk-in session at NU this week and hope to get more information on placement. I just know of programs specific to Northwestern, that schools, like IU-Kelley, are unable to get. Mainly in consulting.
In regards to being a Kelley star. I guess that has never motivated me. I’m much more enticed by the possibility of being an average student at NU, and working to overcome that. I also don’t like the odds of attempting to be a Kelley star, when i can be a NU solid, strong candidate.
In terms of Finances, I agree. I don’t know what’s ahead of me, and that’s why I’m scared and asking for help. I just have no clue the weight of this debt. I just want to believe my career choice and the benefits NU could bring would override that debt.
@cptofthehouse I believe so. My parent’s are very fortunate, as am I. It’s a matter of principle for them to not overpay for an education, not a matter of inability. I need to discuss this more with my parents moving forward, I appreciate these answers and questions.
To get that $80k starting salary, you are going to need to be a NW star.
You are a finance student. Do the math on the $50k Loan with interest and when you start to pay it off.
OP: Have you taken Micro & Macro Economics during your one academic year at Indiana ?
Do you expect to receive a financial aid award from Northwestern ? If so, when ?
Consulting placement is better at Northwestern.
For IB, there are incredible. Kellogg certificate programs available to NU undergrads who want to pursue a career in investment banking. These certificates are quantitative oriented. The courses are sophisticated & demanding.
IU-Kelley certainly places students in IB.
P.S. As far as salaries, I know 23 year old finance majors from Seattle University with starting base salaries of $84,000 & $85,000 plus guaranteed bonus & guaranteed stock options. First year pay totals about $90,000. No relocation was needed, so no relocation awards. The keys were graduating with a GPA in the finance major of 3.80 or above & in being located in a city with major employers.
So a 4.0 from IU-Kelley could & should prove to be quite valuable. However, one’s first year undergraduate grades do not assure one of stellar grades throughout college.
OP: If you graduate IU-Kelley with a high GPA (above 3.80) & honors, then you should have experienced a great internship or two during college, and should receive many interviews for permanent positions.
If unhappy after working for two or three years after college, then a one year specialty masters degree, an MBA or a law degree can get you where you want to go career-wise.
If graduate school is likely, then it is wise to earn an undergraduate degree without incurring debt.
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As an NU grad, I spent first five years in consulting and then traferred to IB where I spent last 18 years. If you are looking at a career in management consulting and/or IB, best advice is to find BEST summer internships so you can easily land these highly competitive “analyst” positions upon graduation. After two or three years, many get MBAs to further their career in these two professions. That’s when you want to go to a top notch MBA program and that’s what matters more than your undergrad school. Many IB pitchbooks and RFPs (for consulting) to clients will include your educational background. Your Indiana undergrad is more than respectable, but your MBA degree will count more in these dog and pony show prez. This was a typical path when I was younger, but I am seeing more high tech company background replacing those 2/3 years between undergrad and MBA schools.
Best way to get into these highly desirable summer internship programs (at least for IB) is to leverage your alumni network. I routinely send resumes to HR for consideration with quick personal notes after talking to them for a few mins. No gurantees but these apps will at least get more than a quick look.