I am currently studying economics at NYU and am a sophomore. I attended Michigan State University my freshman year and made the transfer out here.
There are infinite pluses and minuses to each experience I have had, and my question is more regarding debt.
My parents gave me a bit of an ultimatum: they’ll pay for 2 more years at MSU or 1 more at NYU.
If I continue at NYU, I’ll have anywhere from $50k-$65k in debt upon graduation.
I did love MSU, but came to NYU for the opportunity, especially in a field like economics. Both experiences have been rewarding - the city has taught me a lot, given me some great connections and opportunities as well. MSU is close to home and has a great finance program I would transfer back into, and most importantly, I would graduate with no debt at all!
There are a lot of moving parents to this decision socially, internship-wise, finance-wise.
Can anyone advise me either way or shed some light on the situation? I want to finish off my final two years of undergrad with no regrets.
Some additional details:
I am a fraternity man at both schools
I play club hockey
I had a 3.8 at MSU and a 3.33 at NYU first semester
from northern MI, which is very close to MSU
I think that MSU is very much the more “fun” school, but don’t want to think too hard into that!
In order for you to get that debt your parents will have to cosign. You as a student are limited to a 7500 loan as a Junior and Senior. I never think it’s a good idea to go over the direct loan limit of $28K.
^First of all, what @Erin’s Dad said. The only way you could borrow that much is if your parents co-sign on a private loan for you. They could borrow a Parent PLUS loan, but it would be in their name and you’d be under no legal obligation to repay them.
If you think Michigan State is more fun AND your parents are willing to pay for it for you with no debt, then I would transfer back there. New York is expensive and $50-65K is too much debt to repay, even on a salary about that much right out of the BA (assuming that you get a competitive finance or consulting job that pays BAs that much). You also seem to have done better at MSU than NYU anyway.
You can always move back to New York after you finish your degree at MSU.
UMich is not for me. Applied out of high school and for transfer and was accepted both times, but to me, the people were abundantly better at MSU, and I just couldn’t see myself at UMich.
If I was to to transfer I wanted to move to a big city and really get outside of my comfort zone. That said, if I do go back to MSU, I still feel my experience at NYU wouldn’t be a waste - it’s given me a lot!
That’s definitely significant debt, but not nearly as much as many people take to go to their dream schools.
I wouldn’t say that much debt is out of the question if you really love NYU. But if you don’t, it might be better to go back to MSU. Are you going to be able to graduate in 2 more years if you transfer back to MSU?
If your parents don’t pay for your last year at NYU, where are you going to get the money? YOU can only borrow $7500. I’d go back to MSU and get your degree there. Think of it from a purely economic standpoint: you can get a degree with no debt or get a degree that leaves you $50k+ in debt (IF your parents will cosign) which is nearly twice the recommended maximum debt for UG. Go to MSU.
@undecidedac96, $55K in loans is a $632/month payment for 10 years under standard repayment. I currently make more than the average new college grad ($50K - I’m a postdoctoral fellow) and $632/month would be unaffordable for me. On the more realistic salary of $35-45K…it would be nigh impossible. OP would be drowning in debt. And most of that debt would be non-federal, so the option to do income-based repayment would not exist.
It doesn’t make sense to borrow $50-65K even if you really, really wanted to go somewhere - much less to borrow it if you’re ambivalent about a school.
Only about 19% of college loan borrowers owe more than $50K in loans. It’s generally recommended that your student loan debt not exceed your first year’s salary, and few new college grads make $50-65K immediately.