Unexpected Dilemna

Question

So I have been admitted to Cornell and WashU. I would be attending both schools with full tuition and fees covered as a result of the GI Bill. I turned down WashU (Olin) about 3 weeks ago and committed to Cornell. Yesterday I got a call from WashU offering an additional 50K scholarship to cover all my living expenses for me and my family. So I need some advice. Both schools can get me where I want to be, but at Cornell I would leave with about 40K in debt from living expenses and at WashU it would be 0. Is the name brand and network worth 40K?

I know these advice queries typically end up in return questions such as: "What do you want to do when done?" or "Where do you best fit?". Im going to B school as a career changer and dont really know what I want to do, so please, just state what you would do if in my situation.

Thanks for any help.

I know these advice queries typically end up in return questions such as: "What do you want to do when done?" or "Where do you best fit?". Im going to B school as a career changer and dont really know what I want to do, so please, just state what you would do if in my situation.

Thanks for any help.

GoBruin · Answer

I usually don't respond to these this versus that, but since it's you and you've been very active I'd thought I'd respond.

I would take cornell. I think the drop of out WashU is too big. Ranking wise they aren't too far off but looking at the salary average cornell is 10K over Olin, and 15K difference in signing bonus.

I don't think in this situation you can choose instant money since the you will make it back in 2 years. Also the recruitment opps seem considerably weaker at Olin.

For consulting (I'm using as reference since I'm going consulting)

Cornell has:
Mck (Top 25 recruiter for cornell)
Bain (Top 25)
BCG
Deloitte (Top 25)
Booz Allen (Top 25)
Accenture (Top 25)
LEK

Olin has:
Deloitte
Booz Allen

As well consulting isn't like cornell's specialty, but I just used it as an example. If you look at other comps in the top 25, you have Goldman Sachs, Morgan Stanley, UBS, Ernst & Young, General Electric.

For me the decision would be clear.

https://www.olin.wustl.edu/docs/WCC/EmploymentMBA.pdf

https://www.johnson.cornell.edu/recruite ... rt2008.pdf

GoBruin · Answer

On a side note, I find it very shady that the 2009 Employment report isn't linked on the official website (at least it's not the link under careers which direct you to the 2008 version)

here is the 2009 version
https://www.johnson.cornell.edu/recruite ... rt2009.pdf
All 2 pages of it..

20 pages to 2 pages and unlinked.. hmm...

Also looking at the date from the PDF, the info was compiled in 10 months ago.

coaks · Answer

$40,000 in loans, taken with an 8.5% fixed interest rate a 4.0% fee, would be about $517/mo or $6,200/yr for each of the next 10 years, at the worst. If you end up extending the life of your loan and/or re-entering public service (perhaps in an administrative role with the military) it could be less. It would be a tough call for me, but I think I would go for it, as I do sense that the recruiting and networking opportunities coming out of Cornell would be better. I would especially go for it if (a) I planned to have a dual income household with my significant other, (b) any mortgage payments I might have now or in the future could be easily managed with 500 less a month, and (c) any investments I planned to make to save for my kids college education could be easily made with 500 less a month. If no to either a, b or c or if I was certain I wanted to settle down in the greater Midwest region, I would head to Olin.

anu1979 · Answer

40K is not that much money. Really. I had about 54K when I graduated, committed to a 10 year repayment plan and only pay $500 a month. On top of that, I clerked for 2 years while living in an expensive area which meant my salary was comparatively lower than yours is likely to be and didn't go as far considering the COL.

Go to the school you prefer.

Go to the school you prefer.

GoBruin · Answer

I think you should also look at how long it will take you. Based off signing bonus, once you graduate you'll get an extra 15K plus you get another 10K in salary your first year minus taxes you're probably gonna be 20K paid back.

Plus since you're only borrowing 20K, you should be getting stafford for both which is at 6.8% (no great but still) and 17K of that is substidized during school.

I think the earning potential is very different between the schools, with a ROI of roughly 2-3 years, I would take cornell still :D

LetsGoMets · Answer

I think salary figures from schools are somewhat overrated. Schools usually have a different makeup of career fields which their graduates go, and as a result, it's not always comparing apples to apples.

I don't know averse to debt you are, and I think I'd go to whichever school I liked more.

I think in most career fields, Cornell's name is worth $40k more than Wash U's. I'm not sure which I'd choose. I'm not a big fan of Ithaca and haven't ever been to Stl. In my personal case, I happened to choose the school that gave me more money, but I liked it there a lot more too, and made my decision primarily on fit, and not based on the companies that recruit there. Only time will tell if that's a good decision.

One other thing that strikes me as a little weird is that wash u decided to offer you money now. Does that mean that their yield this year is especially poor? I might be reading into things, but I don't know if it's a good sign that a school ups its offer after you say no to them.

Good luck.

krussell · Answer

Wow! What a dilemma!

I would still go for Cornell. The WashU package is sweet, but Cornell is so much more! It's one of those schools where just being from the school is a feat in any discipline. I knew of it as an international student before I even got interested in grad studies. Who the hell has heard of WashU?

Good job on these accomplishments!!!!

rhyme · Answer

Cornell is a household name.

coaks · Answer

To the HR departments of mid- and large-size companies, Washington University is also a household name.

GrantChap · Answer

Thanks for all the feedback thus far. I feel comfortable in making my decision and alot of the comments here have added further confirmation to what I already knew. As a 28 year old with a family, Cornell feels like a much better fit purely based on demographics of other students. (WashU avg age is 25).

Regarding the offer this late, I dont think it is reading too deep to assume that yield was low and they didnt fill the class. To come back nearly a month after someone rejects your offer and give them a second chance, and 50K more (even after full tuition and fees are covered) tells me that they are missing a few niche student profiles.

I will stick with my guns and head to Cornell despite this new offer. As stated by one comment, only time will tell if this was the right decision.

Thanks for the help

chostein · Answer

I may be biased as Cornellian, but good choice, GrantChap :-D

If you are a grad student with a family, they hook you up with a good townhouse-looking housing. But it is located in north campus.. kinda far and REALLY far if it starts to snow. But so near the dining hall (foods soo good) that you don't have to worry about meals. If you want off campus, when I graduated (2006), a nice place like an apt called 312, was about 1,500 for 1 bed room. There are whole bunch of apt in collegetown so you don't have to live too far. And finally, starbucks came to collegetown. And I als recommend taking a cooking course for non-hotelies @ Hotel school right across the street. I TA-ed that course for several semesters, and it is such a fun class.

LetsGoMets · Answer

Grant, did we meet at Tepper welcome weekend? I don't think you can go wrong at Cornell. Despite the fact that it will cost you more money, I think Cornell is a much safer play and a good choice.

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