College Debt

tsk613's picture
Rank: Baboon | 173

How big of a factor should college debt be when it comes to fields like investment banking? Would a school like IU Kelley be worth it out of state? When it comes down to either going to a school like Kelley or like my state school Binghamton, which would do you guys would be worth it factoring in costs?

Thank you!

Comments (19)

Most Helpful
  • Analyst 2 in PE - Other
Jan 16, 2020

Take it from me who went to a large state school with a great undergrad business program (Michigan, UVA, IU Kelley, UT Austin) that ended up with $70k in student debt it is 100% worth it to take on that debt. Going to a school like that caliber made it much easier for me to get a six figure job out of school vs. an average school where I'd be making $70k if I was lucky.

    • 7
    • 2
Jan 16, 2020

Generally agree with this philosophy but is IU in par with those other 3?

    • 3
    • 1
  • Analyst 2 in PE - Other
Jan 16, 2020

IU itself is not, but Kelley is at least on par with UT Austin, and probs a tier below Michigan and UVA. If you end up being in their IBN they are just as good as any school in the country (granted this is not an easy task)

    • 2
Jan 16, 2020

Are you specifically considering IU Kelley, or is that just a for-instance? Because it's a bit of a unique case that's been discussed on this forum ad nauseam. IU has three distinct sets of students:
1) Gen pop. Very low admissions standards.
2) Kelley. Stricter admissions standards that almost rise to the level of top tier publics.
3) Kelley + admission into the IBW. Take the cream of the crop from Kelley and put them in a curriculum specifically designed to give every possible advantage of landing a front office finance career. Placements can rival top targets.

One of the key questions you have to ask yourself is: how likely are you to be admitted into the IBW? Because unfortunately, despite Kelley being a decent school even if you're not in the IBW, the value proposition for students in group 2 is brought down by the reputation of the larger student body in group 1. This isn't to say that group 2 students can't land great jobs out of college. I just don't think the out-of-state tuition is justifiable unless you're in group 3.

Jan 16, 2020

I've been admitted to IU Kelley, and if I were to go I would go try hard for IBW. Is it manageable to get in with good grades and ECs?

    • 1
Jan 16, 2020

Only worthwhile advice I can offer is to do as much research as possible before you commit. I would try to get in touch with people from the IBW so you can ask about the application process, what they look for, etc.

Jan 17, 2020

Bing is a great school, too, and in-state tuition is surely tempting. But re. IU Kelley, I think part of the equation for you will be how much debt you'll be left with. A school with Kelley's reputation will likely help you find a well-paid position, even if the job is not in IB. Another useful factor to consider is the alumni network, which similarly lasts decades. If the out-of-pocket between the two is $50K or less, it's a worthwhile investment. At this stage I realize it's very hard to think about whether you'd want/need an MBA, but that's also in the mix.

To be honest, people do note where you went to school, including decades later. With LinkedIn, everyone knows where everyone went. In finance in NYC (guessing that's your end goal), there's a cluster of school names you see repeatedly, and that familiarity or connection when your being hired and networking, even decades later, has some relevance. I don't think you'll regret it if you can swing it.
Another consideration is post-college housing costs - if you're commutable to NYC from your/ your parents' home and could do that at least initially, that's a huge savings opportunity.

    • 3
Jan 16, 2020

To to expand on the last point you make, I think that if you don't get into IBW, you will be painting yourself in a negative light relative to your peers who will be in it. You will get a lot of questions about why you didn't do the program. That being said, you could go to an average state school, which would probably be much cheaper, and you could market yourself as a stand out student. You will have to hustle considerably harder though, and that choice is honestly up to you. It's a risk either way, but I think the reward would be much higher if you get into IBW.

Jan 16, 2020

Everyone will have a different opinion, but speaking for myself - yes, definitely worth it. I did something similar (graduated with ~$62k of debt) but landed in IB, and I am now completely debt free after 2 years (used entirety of first 2 bonuses to pay down debt). Career earnings trajectory from this point is astronomically higher than had i not been able to go this route. Could I have gone to a lesser school and still ended up in IB without the debt? Of course, many people do it. But your odds increase substantially with a better platform from which to recruit, and the initial cash outlay in years 1 and 2 of your career will be small relative to lifetime earnings,

    • 2
Jan 17, 2020

It's genius that you decided to use your bonuses to simply clear that debt now before you have any other larger investment you wish to save for. Bravo.

Jan 16, 2020

Personal debt is bad, mmkay?

    • 2
    • 2
  • Associate 2 in VC
Jan 16, 2020

When reading these replies, keep in mind that most people who decided to take on debt to attend a more prestigous university will probably encourage you to do the same. I know a few people who broke into IB from Binghamton, so it's not impossible, but will obviously require a lot of work and hustle.

Also, keep in mind that you're not even in college yet. You may not want to pursue IB three years from now.

    • 3
Jan 16, 2020
Associate 2 in VC:

Also, keep in mind that you're not even in college yet. You may not want to pursue IB three years from now.

Sage advice.

    • 3
Jan 16, 2020

Yeah i wouldn't do that. $100k or more for something you don't even know you'll want to do is stupid. Kelly is good, but unless you come out of college making $150 you'll have that for at least 10 years.

    • 2
Jan 16, 2020

Sound reply, adds a bit of spice to the conversation.

That being said, don't most students nowadays come out expecting 10-15 years of debt repayment.

Buying tesla weeklies is literally free money.

Jan 17, 2020

Plebs maybe

Jan 17, 2020

Sure, but just the average student is doing that doens't mean our new friend has to. I had a friend in college who attended our large, very expensive state university similar to IU. He did everything he could to get into IB in order to pay off the $150k student debt he took on to escape his coal mining town. He didn't get into IB, instead something else like S&T I think and lives in a LCOL area. He makes fine money for the area and will still have that debt for 10 years.

Now fast forward and imagine our new friend doesn't even like Finance, doesn't get into whatever club, or doesn't have the GPA and took on all this debt. Was it worth it? Probably not, especially since IU doesn't even have an IST or Engineering school.

It sounds like you're from New York. If I were you, I'd go to Binghamton or a school you get some $$ at and start reading about finance, reaching out to folks to learn about their careers, and make sure to get good grades. If those people tell you Binghamton won't get you in, transfer. Don't take life crippling debt so you could maybe get into IB.

  • Prospect in IB - Gen
Jan 17, 2020

I was between Bing and a Big Ten state school ( think Penn State, Ohio State, etc.) And I had to take on a little debt, and also still not a target (although more so than Bing). It's been worth it.

Even at Bing tho or wherever you wind up it would be imperative to get into the IB program (heard the one at IU is a fucking bitch to get into tho) and you'll have a good shot at most SA gigs if you keep your gpa 3.6+, get at least a sophomore internship, ib program, student investment fund..

and if you are going FT in IB I don't think you should be worried about being able to pay down college debt.

  • Analyst 1 in IB - Gen
Jan 17, 2020
Comment
    • 2