Personal Wealth Management

In Finding the “Best” University, we looked at criteria used to rate educational institutions.

While what is “best” is highly debatable, the cost of an education is more straightforward. And the elite universities are expensive compared to lesser name schools.

Is the payback on your investment worth the price? Will attending Yale provide you with a better long term career; so that the extra income you generate is worth the added cost of the school?

This post will look at the case for attending a prestigious institute.

Better Students Attend Elite Schools

Getting into a prestigious university is extremely competitive. To be accepted, students need to have excelled in high school academics and entrance exams. This is an indication that the average student entering an elite school is stronger scholastically than those not accepted.

Princeton only accepts 10.2% of its applicants. In the same state, William Patterson University of New Jersey accepts 69.4% of applicants. It would be fair to say that the average high school academic background for freshmen is higher at Princeton than William Patterson.

When assessing university graduates for an entry level position, it would be reasonable to view a graduate from a prestigious school favorably when deciding on who to interview.

I would agree with that argument. The caveat being that not everyone can afford (or wants to pay) the cost of an elite school. Therefore, many “smart” or “smarter” high school seniors go elsewhere for a more cost effective education.

It is not that they could not get accepted. They simply decided not to apply. As a result, I would not automatically assume an elite school graduate is smarter. Others might not feel the same though.

Competitiveness Stimulates the Brain

Some argue that being surrounded by smart, competitive peers improves one’s cognitive abilities.

I would agree in part with this. I have seen some people bloom when surrounded by competitive, talented individuals. However, I have also seen others become intimidated and go into a shell. And I have seen others that have said, “Hey, I’m in! Where’s the party?”

Whether one takes advantage of the opportunities is up to each individual.

Even if one attends a less prestigious school, there are many things one can do to stimulate one’s brain. Debate clubs, business competitions, overseas work exchanges, co-op programs; the list is enormous.

Elite Schools Provide Better Resources

The argument here is that elite schools tend to be well funded. This translates into better facilities, faculty, guest lecturers, etc. to enhance the educational experience for students.

This might be true. Again, it is up to the individual to take advantage of these opportunities. Some do. Some would rather enjoy the weekly kegger in the frat house.

Networking is Superior at Elite Schools

This is one assertion to which I fully subscribe.

I believe you definitely gain an advantage in developing business contacts while attending an elite school. For example, the last four US presidents all attended Ivy League schools.

The probability of meeting and interacting with successful people is higher at an elite university over a community college. Those contacts may be very useful in advancing one’s career. Just look at all of President Obama’s buddies occupying positions in the current US administration. Of course, the same can be said for any President.

Compensation for Elite Graduates is Excellent

On average, this appears to be true. According the current Payscale ranking, initial and mid-career median salaries for graduates of elite universities are higher than most other schools.

For example, the initial and mid-career median salaries for the following elite schools are: Harvard $60,000, $126,000; Princeton $65,000, $124,000; Stanford $67,500, $124,000; Notre Dame $55,300, $121,000; Yale $56,000, $120,000; Duke $56,800, $116,000.

The salary potential for the highest state schools does not reach as high. University of California Berkley $57,100, $112,000; Colorado School of Mining $60,000, $109,000; New Jersey Institute of Technology $55,100, $104,000.

So it would appear that degrees from elite schools assist in earning better salaries over time.

Impressive Arguments

Time to stop reading this post, get your enrolment application completed, and start studying?

If so, you might be interested in this article as you contemplate how to finance your elite education.

Decided to put down that enrolment form for a minute?

Good. Because next we will look at the arguments against attending an elite university.