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Northwestern; how much debt is it worth?

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Replies to: Northwestern; how much debt is it worth?

  • Mwfan1921Mwfan1921 Registered User Posts: 1,791 Senior Member
    edited May 20
    @AQArgo Not sure how many econ undergrads are coming out of NU making $80K+, let alone banking at $100K.

    You can ask the career center to give you more details, they are the only ones that will have that info. The grads who do land those jobs will have had similar type internships and/or other connections.

    What year are you and what is your GPA at Kelley? What internships have you had? What are you doing this summer?

    Edited to add: Don't consulting and investment banking firms recruit at Kelley?
  • cptofthehousecptofthehouse Registered User Posts: 27,895 Senior Member
    edited May 20
    What will be your degree from NW? I don’t think so, but I’ll ask.

    Yes, banking I know recruits at Kelley. I don’t think NW has an undergrad business program or major much less a finance concentration. Just plain ol’ Econ major like from any liberal arts school. I don’t know anyone on Wall and midtown talking about recruiting from NW. But I’m not in the thick of that. My brother and DH are

    Full disclosure here regarding my personal feelings on this: I’d have preferred NW and an Econ program. I do not like Undergrad business programs. I’m big on LACs. But, given the goals and start of OP, in addition to extra cost, I’d stick with Kelley. If OP is taking another tack going more liberal arts and not focused on going directly intonIB and finance setting, different story. But family situation is an issue too

    I know too many kids, very smart kids, who gambled they’d make it big in Manhattan after borrowing a lot to go to an expensive college. Often parents co signed the loans. Yes, most are making the big bucks. But it costs a lot to live in that setting. That loan payment is a killer. Especially when parents can’t help. And some of these parents are needing help now too. My oldest is in mid 30s so A lot of his peers have parents who have retired, are disabled , Ill lost jobs etc. Those loans are really problems. They grow astronomically especially when you don’t start paying on them right away.

  • bluebayoubluebayou Registered User Posts: 26,663 Senior Member
    just out of curiosity, did you not apply to Ross?
  • AQArgoAQArgo Registered User Posts: 58 Junior Member
    @Mwfan1921 I understand it sounds odd. If you look in-depth at consulting salaries at MBB (McKinsey, Bain, BCG) you'll see 80k is very much regular. Northwestern is one of the best schools in terms of MBB recruiting. Additionally, while I don't know NU's banking reputation, if you look into banking you will also see an average of around 85K base salary, not including sign-on bonuses, end of the year bonuses. Kelley has a banking workshop, and so I've heard these numbers directly from the director which sends kids to Goldman, J.P Morgan, etc. It's not that Kelley doesn't send kids, they do, but the number of kids is much lower when you compare IU to NU.

    As for me, I will now be a sophomore next year, I have a 4.0 GPA, and am currently working as a Finance Analysis Assistant at an electric/energy company in Wisconsin.
  • AQArgoAQArgo Registered User Posts: 58 Junior Member
    @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.
  • AQArgoAQArgo Registered User Posts: 58 Junior Member
    @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).
  • suzy100suzy100 Registered User Posts: 5,721 Senior Member
    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.
  • Mwfan1921Mwfan1921 Registered User Posts: 1,791 Senior Member
    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.

    It's not that Kelley doesn't send kids, they do, but the number of kids is much lower when you compare IU to NU.

    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.
  • AQArgoAQArgo Registered User Posts: 58 Junior Member
    @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.
  • AQArgoAQArgo Registered User Posts: 58 Junior Member
    @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.
  • AQArgoAQArgo Registered User Posts: 58 Junior Member
    @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.)
  • privatebankerprivatebanker Registered User Posts: 4,928 Senior Member
    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.
  • cptofthehousecptofthehouse Registered User Posts: 27,895 Senior Member
    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
  • Mwfan1921Mwfan1921 Registered User Posts: 1,791 Senior Member
    edited May 20
    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.

    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.
  • cptofthehousecptofthehouse Registered User Posts: 27,895 Senior Member
    I’m sure NW gives numbers of what their Econ grads are getting upon graduation. As does Kelley. Look them up.
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