Hello, my daughter is admitted to NYU Stern undergraduate, but has been offered only 11K scholarship that leaves approx. 66K to be paid out of pocket and I expect it to increase 3 to 4 % year or year in next 3 years. She has also gotten admission into UT Austin’s Mccomb business school’s non-BHP program. She is a Texas resident, so tuition at UT will be approx. 25K each year (No scholarship). She is very much interested in Investment banking job. I read several blogs on these two schools and opportunities to get into IB jobs. I find that Stern has higher opportunities being in NY, but Mccomb also has good chance in Houston. With respect to out of pocket tuition, I can afford to pay all 4 years tuition at either school and she will not need to take a loan. But, my question.... is it really worth to spend almost 275K at Stern? If she goes to Stern, what’s the ROI and in how much time it can be recovered vs going at Mccomb and spending 100K. I also found that Mccomb has FAP program. How easy or difficult to get into FAP program and does it give you same oppprtu
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I would 100% go UT. If she got into NYU, she will definitely excel at UT. Save yourself the money and put more responsibility on her to get a job in IB. UT is a huge pipeline for O&G IB but I've seen people go to New York. Way bigger ROI on UT with respect to costs.
175k is a lot of money. When i have kids and I'm in the same situation- I would do the same as you, but I would like to see what other people have to say.
UT, NYU is not worth the cost difference.
If she works hard at UT, she'll be able to break into IB
Reality is, if she wants to get an IB job in NY, being at NYU will be extremely more advantageous. If you want her to have to work harder to earn a job in IB, then send her to UT. If she wants to do Oil & Gas in Houston, send her to UT.
Honestly though, she shouldn't be basing her college decision based off of which one will better help her get into IB. She should base it off of which school she will fit in best at and which will give her the best overall college experience. Otherwise she is going to hate her 4 years at school just so that she can end up hating her first 2 years out of school.
There's a lot to be said for sending your daughter where she'll be happiest for the next four years, and that's ultimately a personal decision. (If she's got a strong preference for going to school in New York, you could consider putting her on the hook for a fraction of the tuition increase via student loans. If she wants to drop an extra $175k on college, maybe she should have some skin in the game? Just a thought.)
That said, from an outsider's perspective, I absolutely don't think NYU is worth an extra $175k over UT. NYU rightfully gets a lot of respect on this forum because it has great recruiting into NY finance. But as far as the broader prestige of the institution is concerned, I think it's a step below many other elite universities that can get away with charging obscene tuition. Don't get me wrong, NYU is a great school that opens a ton of doors, but it's not Columbia, and it's certainly not Harvard. You're paying a huge premium because its in Manhattan, and in my opinion you don't get all of that back with the diploma.
UT's less prestigious, but only marginally so. And it has such a large alumni network that getting a NY IB job immediately after college is very doable. Plus, your daughter is 17 or 18 years old - she may be thinking IB now, but who's to say she won't change her mind? If she does, I think a lot of NYU's benefit gets wiped out.
Congrats to you daughter for getting into some great schools. You've got a tough choice but she'll be in a great spot either way.
Thanks everyone for your feedback. In my mind I had same thoughts that you guys spelled out. This will help me in discussion with my daughter and hopefully we make a right decision.
As an NYU student myself, I have to agree with the other comments. I've met quite a lot of bankers in NYC who went to Texas state schools who are doing quite well for themselves here. NYU isn't worth the 6 figure price tag, but ultimately it will depend on your daughter's work ethic at UT. If she takes recruiting very seriously and keeps up her GPA, there's no reason why she can't secure an IB job either in Houston or in NYC. It'll definitely be harder to do IB in NYC coming from Texas, but it's not impossible.
Regardless, I think she should know how cut-throat Stern truly is and if her GPA drops below ~3.6, say bye bye to banking. I don't mean to sound harsh, but the talent pool in Stern, and more broadly in NYC, is very concentrated and as a result, very competitive. She wouldn't have to be in this kind of environment if she's in UT (albeit, she will have to devote more time to seeking out recruiting/networking opportunities and good internships).
IMO go to UT. Stern is good, but not 70k/yr good.
Just want to drop in to congratulate dtharwala for being such an active parent and doing their research to help their kid do best in life. Not a common type of poster on this forum, but a welcome one, in my opinion.
+1 to this
I had great parents, but I do wish they had offered me slightly more career guidance.
UT alumni base is very large in finance. I would do that no question
So I'm in a west coast based school and it's unbelievable how well UT Austin does even in SF recruiting. I know a couple of banks with tech coverage groups where UT Austin is a core school and they regularly take a few kids from there every year.
I would wager and say that if she's a smart kid, her chances at getting an IB job are higher going to UT Austin than NYU, simply because there's just not as much competition.
I would echo everything the above posters have said. Choose UT over NYU - the fee premium isn't worth it. Your daughter will do perfectly fine on the recruiting front for IB if she attends UT Austin. In my analyst class (albeit ages ago), there was adequate representation from both places.
Worst come worst, if she's really desparate to be in NYC, she can apply to transfer midway through the program but I doubt she will.
One last thing - if she were to take NYU, not only would you be paying the tuition premium but also have to stomach the misc costs of living in NYC. This is guaranteed to drive her (and you) insane.
PS - if you direct message me, I'd be happy to share contact details with you if you'd like to speak further on the phone. Not a fan of revealing my identity here but I think in this circumstance, it may help to actually speak so I can put to rest any of those kind of worries you may have as a parent.
I like to add my 2 cents here since I was in the exact same situation as your daughter a few years ago. I was accepted to both schools (UT non-bhp) and decided to attend UT due to financial reasons.
I will admit that it's hard to make it into NY IB from UT but not impossible. I've had several friends that have successfully made it there. UT's large alumni base makes it possible to place just about anywhere (I'm personally in SF).
Holistically, I think UT is better in terms of the experience your daughter would get. I've had a great 4 years in Austin and I don't think I would have had a similar experience in New York. Feel free to PM me if you have any more questions.
Echoing what many posters have already said: UT and other public schools where you can pay in-state tuition > non-Ivy private schools, in my opinion. It rarely makes sense to me to attend these private schools with such a high sticker price, where you could get an equal education at a public school at a much more reasonable price.
Best of luck to you and your daughter, congratulations on her getting into both of these great schools, she will have a great future ahead, I'm sure!
UT is a fantastic school - I would take it over every non-Ivy out there given i) quality of education/exits, ii) fun college experience (e.g. football & greek life), and most importantly, iii) value compared to other schools
I work at a top MM IB and we consistently take UT grads. They have a great reputation within my firm as well-rounded candidates.
I went to UMich Ross for undergrad and am currently doing my MBA at NYU Stern.
Save the tuition money for undergrad and go to UT. Trust me on this. If you want to spend an obscene amount of money, save it for graduate school.
Nope. Edit: Sorry, meant to reply to the OP
more shit? goodness
Thinking a bit outside the box here is cultural fit.
As having gone to NYU (for undergrad), I can say that it's one of the more/most liberal large school in the country. While Stern is more capitalist-focused, I'm sure her social circle will incude people from all of the 5 other schools within NYU.
Seeing you're from TX (and having lived in Dallas for a year myself), it's clearly a very different culture. The girls who go to SMU are vastly different in ideology, world-view, and beliefs than girls from NYU. It's like night and day.
That being said, UT and NYU are both great schools academically for undergrad. The decision should be based on where she feels more comfortable socially.
If you paid Harvard UG for 250k, might be worth it but NYU is great but way overpriced, and probably 3 steps under Harvard tiers. You never know what shit comes along in future, and it can't hurt to have more money (if well spent).
UT is fine and I'd also say, you should give her incentives to work her ass off instead of having everything handed to her - good way to preserve your retirement money.
+1
from my observations, you have 2 distinct group of kids at NYU. The ones who have multi-millionaire parents who have no issue paying for tuition. And those who come less wealthy families (i.e. "poor for NYU standards) who take on huge amounts of loans.
And the loans are like a deferred bomb, you cant see how it blows until the timer's up, not when it's bought
I would take UT over NYU even if the costs were the same. NYU is the epitome of a college experience that’s not a traditional college experience. The opportunities will be similar at both schools. The fact that UT is cheaper is just icing on the cake.
What did you decide? My daughter got into NYU from waitlist today and she is already accepted in UT BHP and now wants to go to NYU.
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