Semi-targets worth $150-250k debt?

Looking to go into S&T or IB but not necessarily NYC. I hear people talk a lot about how important schools are, but is it really worth taking out $150-250k in loans to transfer to a school such as Virginia/Indiana/UIUC rather than stay at a non-target SEC school (Missouri/Kentucky/Tennessee) for $25-30k total and go for target MSF with scholarships after? Don’t have any connections in banking yet and no internships as a sophomore

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I would be paying and low end would be $150k at Indiana and high $250k at Virginia

 

Keep in mind that if you are transferring as a rising junior after 2 years into a school, you will miss a lot of the IB recruiting cycle that happens in sophomore spring and summer. Not sure what S&T timelines are but I think it's sophomore summer/fall. Though, recruiting for consulting in the fall should be possible but may be difficult without having a GPA at your new school. Are you transferring after 1 or 2 years from your non-target SEC school?

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For what it's worth, I don't think you should saddle yourself with debt that can only be paid off by working in IB after graduation.

Securing a position is extremely competitive and the odds are against you. On average, you have less than a 2% chance, WSO says in its guide books.

At Goldman Sachs, for example, more than 28,000 students applied to summer 2019 internships for less than 500 spots, or a 1.8 percent yield, according to a recent investor report filed with the SEC. This was for the global investment banking divisions; on the other hand, the entire firm received more than 85,000 applications for 2,600 spots, or a 3.1 percent yield. Considering NYC alone, which is where most aspiring bankers want to be, probably yields even lower. Most BBs report similar statistics.

Indeed, this site is filled with plenty of success stories. But, there are no guarantees.

 

In my personal experience as a non-target with an offer from an EB, it would not have been worth it to do that. I get to graduate with no debt (in-state tuition and scholarships) and basically it takes a lot of hard work as you have to maintain a high GPA (3.9+), get leadership positions in clubs, and get relevant internship/work experiences before sophomore spring semester. And then obviously networking is crucial.

Ultimately it makes the path more difficult if you choose a non target, but if you feel like you could achieve the things above then I would strongly consider choosing the non-target. Graduating with no or minimal debt is great especially if going to work in IB afterwards.

 

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