IU Kelley [$31.9k] vs. Full Tuition In-State [University of Iowa, $1.3k] [vs. University of Minnesota, $13.4k]

Hello! I am a current senior working on my college decision and I have narrowed my options down to three (pending acceptance elsewhere). During the application process, going into debt was very much frowned upon so that resulted in me applying to zero private schools which I deeply regret now. With that being said, I am stuck between three options with the focus being ultimately getting the best bang for my buck. I plan on majoring in finance and another business field. My family is going to pay for room and board wherever I go, so I will be paying for tuition on my own. Let me know what your thoughts are about my situation and if you have any advice!

Option 1: University of Iowa (In-State) (and University Honors)
$1,283 per year after scholarship

Option 2: University of Minnesota Twin Cities (and University Honors)
$13,362 per year after scholarship

Option 3: Indiana University Bloomington (DA to Kelley)
$31,891 per year after scholarship

  1. Many private schools are cheaper than public schools after merit aid. You still have a few days.

  2. What do you want to do with your degree ?

  3. How would you pay for UMN or IU since your parents aren’t ? You can’t get loans that big and your parents wisely don’t want.

So unless you have a big stash of $$ to pay, you have one choice.

For what it’s worth, in 2022, Tippie shows 97% successful with a $60k median in finance.

UMN 2024 shows a median, not median, of $69k in finance.

IU finance shows a mean of $84,520 and Median of $80,600. I’d surmise that they place a bigger chunk in high cost areas - NYC/Chicago

In the end, everyone makes their own situations- Tippie has six figure earners too. Note their data was two years ago vs the others being current.

And you should only go where’s affordable.

I currently work three jobs and make around $350 a week while taking 15 credit hours at a local community college. This will allow me to pay for Iowa or UMN out of pocket (maybe a little uncomfortable for UMN but still doable). There is a local scholarship for $9,000 that can be renewed each year while in college and I am holding out hope for that. As far as paying for IU goes, I will have to take out a loan at some point so I am just wondering if it is worth it or not.

With my degree, I ultimately want to get into real estate and operate my own properties. That being said, I am most looking forward to networking in college and making as many connections as possible.

Are you a transfer student ?

To me, Iowa is a no brainer then. What you need won’t be different if you take advantage.

You might reach out to a club student and talk to them about the school.

Btw as your parents said no debt, you can’t go to IU. You can only borrow $5500 the first year, $27k total.

Good luck.

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I can only borrow $5500 the first year? I know that’s from the FAFSA but I just assumed there were more private loan options. How does anyone pay for out-of-state college or a prestigious private university then???

Sorry they don’t teach you this at my high school haha.

There are situations where it is worth it to pay more, and take out loans, for the tangible benefits available from attending certain highly selective institutions.

That is not the case here. You should attend Iowa. All 3 are solid institutions and open the same doors.

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Define prestigious ? You mentioned three very solid b schools that can get you a job with a real estate firm. Schools like IU likely place more in high paying jobs but because they are in higher cost cities. You are not seeking that type of career.

Many choose colleges for cost. That’s why they stay in state or they find a high merit school - that’s why Alabama has 1500 kids from ILL, 2K from Nj/NY/CT, over 1k from Texas and CA.

You haven’t applied to privates - many have high merit.

But your budget is stricter than most.

Many over extend or take loans higher than they should. And they’ll regret that in many cases years later. But you can take $5500 first year, $6500 second year, and $7500 the last two. Sounds like you might finish early.

Parents can take extra loans and yours smartly won’t. Loans have fees. When you borrow $5500 you actually get less. Then you have to pay it back.

Tippie is a fine school. UMN is too - a stretch but sounds like you can pull it off. It’s city living vs college town.

You are in a good place there. Don’t forget, Tippie salary data was two years older. So it’ll be higher now.

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So Kelley isn’t worth it? And UMN isn’t worth an extra $10-12k a year?

Kelley - no because it’s not affordable and you are not seeking I Banking etc.

UMN is if you are willing to pay $12k more (you earn it) and because you desire city bs town living.

Educationally - no.

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When I said prestigious I meant like Ivy’s and comparable schools… not my situation. I guess I was taking Kelley as better than it really is. What if I were to get accepted to UNC Chapel Hill or UT Austin? Would those be worth taking out loans for?

Can I ask how Kelley is in the top ten for undergrad business programs then? Genuine question

No because your career goal doesn’t even require college per se.

My son got into a top 10 engineering school. Was all set. Visited Alabama (ranked 90 or so) at the request of friends. Came back, applied, announced he was going there. I was mortified.

Told me rankings are for parents and making money. Companies don’t care.

He saved me $80k, works with kids from that school and higher ranked - he was right.

Companies at UMN and IU will also consider Tippie grads. The internet has leveled the playing field.

Forget debt.

What are your stats - gpa, SAT/ACT, highest math ?

US News created a methodology - go see the methodology - you’d be surprised - and they met it.

Other ranks have IU lower.

Methodologies are different based on the ranker.

Rank doesn’t mean salary. You have to ‘earn’ your job - and jobs in Des Moines will pay less than Chicago. Cheaper to live.

Bottom line - you have a budget issue. Finance 101. Don’t stay at the Ritz Carlton if you can only afford the Comfort Inn.

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Here are my stats: 4.0/4.0 GPA (no weighted at my school), 33 ACT, 4 in AP Calc BC last year as a Junior

I guess I’ve gotten carried away with just wanting to get out and experience a different part of the world. I’ve been in a small town in Iowa my whole life and I’m longing to go experience something new that nobody around here has done. Iowa has been the smart choice all along.

For all four years?

Who is going to co-sign those loans. You can’t take them out by yourself.

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I have enough right now to pay for the first year. I plan on having enough by the fall to pay for sophomore year as well. As far as the last two years go, I trust myself with working during college and summer internships/jobs to make enough to pay for that.

My parents would co sign the loans. As long as I am solely responsible for paying for it, I think they would do that.

They would be responsible. It will be their loan, not a co sign and how will you pay it back? What if you can’t.

I had a friend in college - her folks sold their house and moved into a trailer to send her.

Two years later they couldn’t pay and she ended up at Montana - and btw has had a heck of a better career in the chosen major than the high fallutin private we were at. I flamed out of that career myself quickly.

With your stats, you can go, for example, to Alabama Culverhouse for $5k tuition. Finance has a mean salary of $69k.

There may be other ‘affordable’ options. That’s an example of a school that buys kids in.

I’d say it’s an equivalent of Tippie and UMN but a different environment etc.

Okay. Three things then. I want to preface by saying a huge thank you for just having a conversation about this. This is about as much guidance as I have had the entire time.

  1. Just curious… in what scenario would it be worth it to pay for IU Kelley? And when would it be worth it to pay for a prestigious business school in general?

  2. Is finance even the right major for me? The only reason I’m leaning that way is because I enjoy numbers and want to get into business.

  3. What would you do in my situation? Major, school, all of it.