NYU Stern ($$$$) vs Kellogg ($$$)

Question

I am in the middle of a dilemma. I have been extremely lucky to have gotten admitted to these 2 amazing programs with significant scholarships. I am now in the process of deciding if going to the M7 is worth giving up the money at the T10/T15.

I've networked extensively with both schools now and I feel good at both culture-wise. 
I know COL in Evanston is lower but after speaking with current students it doesn't seem to be that much although it does make the differential a bit smaller. I'd also have to give up my Consortium membership if I decide to attend Kellogg since their membership becomes effective until next cycle. 
As far as location is concerned, I was excited about potentially living in NYC but I've never been to Chicago and staying in a college town (Evanston) has other advantages. 
My career goals are management consulting immediately post-MBA and eventually transition into tech strategy or entrepreneurship and while I'm not MBB-or-bust I'd obviously would want to go to the best firm possible and Kellogg seems to give me a slightly better chance there but Stern places very well in that industry too.
I also don't want to stay in Chicago post-MBA. I felt that Kellogg would give me a worst chance to end in NYC if I so choose but it seems to be more of a situation where students don't go to NY because they don't want to rather than because they can't. I am also not set on landing in NYC but I would want it as a viable option.

Overall I'm leaning Kellogg but I've seen many of the "always take the money" posts and I wonder if it'd be worth it in the long run to go with Stern which is also an amazing program!

Any insights would be appreciated.

bb · Answer

Huh… take the money posts… that works in case of a commodity and so it makes that assumption. At the same time, it can also assume that you’re a personal contribution to the recruiting process outshines significantly with the school brings to the table. That may have some merit because you could say that people out of Harvard import get amazing jobs because they are out of Harvard but they also get amazing jobs because they’ve had amazing work experience before Harvard and achievements which have a lead them to Harvard in the first place.

There are many elements to a higher ranked business school program and many values. Some of them are more tangible and others are less, it’s not just about having a different label or a different brand. For example, some people choose to buy a Toyota Corolla while others buy a Tesla. Those send different messages and have different value propositions.

I can also see some people who are jaded who have gone through the process and felt they did not get as much impact. Maybe. I would love to hear from them because I rarely need to hear regrets from anyone about the business school.

I guess the first thing, if you want to be in New York then you should go to Stern. It does not mean that you’ll find a job there necessarily but if that’s where you want to be then go to school there. Keep in mind that everyone recruits in New York. Harvard, Sloan, Tuck, Columbia, and a lot of other bigger fancier schools.

If your immediate goal after the business school and by the way this is the only goal that really matters is to go into consulting, I don’t think the difference will be that significant based on the schools you attend. I do hear from time to time that there are quotas and there are Expectations on potentially how many people will be hired from an M7 or a top 10 for the top 20 but I’m not sure how scientific or accurate that really is … it may be more of a soft expectation that every year will bring five or 10 people from a particular program… but your salary working for a consulting company will be pretty much the same regardless of where you went to school. The bigger difference is having consulting companies present on campus and having clubs and a pipeline of recruits going into the consulting companies who can help you with mock interviews and network and referrals.

At the same time, I’m surprised the difference between the scholarships and offers you received is that significant or meaningful. Stern has the highest cost of attendance of any business school basically in the world 😂 granted it’s not by much but it is still the highest because of the higher tuition and higher cost of living… what is the amount we are considering here? Are we bargaining about 20 K?

Posted from my mobile device

bb · Answer

By the way, here’s a quick overview of what benefits and values you go get by going to a higher rank program: https://gmatclub.com/forum/value-of-a-t ... 13365.html Posted from my mobile device

mbataco · Answer

In terms of tuition I'd say it's around 40 K (meaning I'd have to pay that at one vs 0 at the other). I know it seems like a small amount in the grand scheme of things but honestly I have no point of reference since I've usually had low-paying jobs. I think it's easier to see when coming from someone who is making $60K+ before starting their MBA but $40K still feels like a lot of money. especially since it's not really $40K it's more like $140K vs $100K when factoring in COL and travel and such.

bb

bb · Answer

Got it. Thanks for clarifying. It’s good to put into perspective. The funny side is coming from extreme poverty, when I was choosing, it did not matter if it was 40k 100k or $4 million, it was all pretty much unattainable even if I only had to pay the cost of living so at that point it’s like whatever 😂 that made my choice is a lot easier to an extent

And if you want to look at the total cost, you can always also figure the opportunity cost. The nut case it’s not 100 K versus 140 K, it’s more like 200 K versus 240 K and that’s 15-20% difference.

Another way to look at it is imagine you would not have gotten any scholarship money. Would you have still gone at the full price? If you only got into Stern and you had to pay the full price and nowhere else?

Finally, money is a personal thing and some people are very frugal and just don’t feel comfortable spending more. And that’s OK. You want to do what you’re comfortable with. Some people don’t want a high stress piping job because they don’t want to stress. That’s totally fair.

I would say that the difference between Kellogg and Stern will be less than you think because of cost of living in New York. Also, Keep in mind that all business calls are extremely optimistic with student budgets. The living expenses they publish are not very realistic. Maybe if you live in the cardboard box under the bridge you can meet the budget but the bottom line is that you will end up needing more money than what they say. That’s just how it is. There are trips, there are parties, there are networking events, and all of them adapt very quickly. There are also sponsored students who get paid a salary while they go to school and all of their expenses are paid and they’re just having fun. It’s going to be tricky. Basically all the normal people are very broke and poor during business school🥴 it doesn’t matter if you borrow 100 grand or 140 grand but keep this in mind, you will need more money than you think.

I feel that you can easily justify spending an extra $20,000 on Kellogg per year. A school that is ranked within the top five almost every year, and we’ll see how it is in US news ranking’s next week, assuming there are even rankings 😇 but in terms of caliber of students and you being pushed harder by them and product management classes, recruiting, elite name which is important if you don’t have strong brands on your résumé as well as higher selectivity and prestige and the fact that you’re not a number to school in the city (reference to Columbia in New York). I would say Kellogg would be a worthwhile investment. The only aspect that doesn’t reconcile is being in New York. I think you totally can recruit in New York and you can go there. Everyone and their grandma recruits they are so I don’t see why not but I doubt The alumni strengths there will be the same as Stern and esp NYU.

PS. My minivan was way over $40k. 😂

Posted from my mobile device

mbataco · Answer

bb

Thank you! Yeah I think what you say makes sense.

bb · Answer

Oh I just thought of a final argument for Kellogg 😂 I’m really trying here but I think there is some merit to my argument.

I’ve graduated years ago and I took a full ride. My career services was useless and I did not get a job through them so I felt a bit upset for the first few years after graduation but about five years later, I started feeling guilty and feeling that I should probably pay them back and contribute Because they gave me a full ride. It cost me nothing. So I felt guilty and over the last 10 years I have been regularly donating money. I probably would give them less or even nothing if I paid the full price but at this point, over 10 years, I could’ve bought another minivan 😱

PS. It is the first time I actually calculated my contributions over the years but I don’t think anyone ever looks back at these things and if you’re going to count every penny and every dollar, I would count these too potentially. If you are like me and would feel guilty or somehow obligated to contribute and pay back once you get established, it’s going to be a wash.

Posted from my mobile device

AliciaSierra · Answer

Hey  mbataco ,

Where did you decide to go? I am in NYC. Let me know if you need any further information.

mbataco · Answer

I ended up deciding to go to Kellogg!

NYU Stern ($$$$) vs Kellogg ($$$)

Stern ($$$$) vs Kellogg ($$$)

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