Whether the benefit of attending an elite university is worth the cost is up to each individual. Everyone is unique and what is best for one person might not be for another.
It is extremely difficult to get accepted into the big name schools due to the overwhelming number of applicants. As a free market believer, this indicates to me that there must be value in attending an elite school. Why else would people want to enrol? The nightlife cannot be that good.
However, if asked my opinion, I would not spend the money to attend an elite university.
So why would I pass on them?
Having worked with and hired a wide amount of professionals from every type of school, here are some thoughts from an employer’s perspective.
The Case for Elite Universities
In this post, we considered the advantages of attending an elite school. These included: better students attend elite schools; competitiveness stimulates the brain; elite schools provide better resources; compensation is higher; networking is superior.
Yes, you need to be a top student to get accepted into an elite university due to the sheer number of applicants each year. Most employers will be impressed when seeing a big name university on a candidate’s resume. At the same time though, employers recognize that elite schools are quite expensive and will not automatically assume that all other applicants are not as “smart.” Maybe they are simply more fiscally prudent. In business, employees that understand fiscal prudence are valued.
On average, I believe attending an elite school will help you land the interview, but it will not get you the position.
I agree that the resources and peer groups at elite universities offer better opportunities for students compared to other schools. But, as an employer, I want to see that the candidate has taken advantage of these opportunities. For me, it is much better to engage in extra-curricular activities at a school with less resources than not to avail oneself at a school with many options. And, as an employer, I want to see activities that relate in some way to the position being applied for.
Where there are salary studies, starting and mid-career compensation, on average, appears better for elite school graduates. However, this is not significantly higher than graduates from other schools obtain. If you sold a kidney or took on huge debt to attend a top school, you may be in for a surprise upon graduation.
An area where I do believe elite schools have a big advantage is in networking. But how much value comes from this I cannot estimate. To me, this may be the best reason for attending a prestigious university.
The Case Against Elite Universities
In this post, we looked at the negatives in attending an elite school. The key ones being; the higher cost of the elite schools; the fact that an elite school may not be the best in your field of interest; academic background is only one consideration when hiring staff.
The main reason I would not recommend attending an elite school is the cost. The standard fees at elite schools tend to be higher than at other schools. And, as elite schools are not located in every city, students have to incur significant travel and housing costs to attend. By my estimate, a 4 year program may cost an extra $200,000.
I see education as an investment. Based on my experience and analysis, I do not see the benefits received worth the higher cost. I think a student can get a better return by saving money and attending a less costly school. Then, taking some of the money saved and investing directly in relevant skills.
When reviewing resumes, I would rather see someone with a Commerce degree from a smaller university and then some additional skills, such as investment courses taken outside the university, than simply the degree from an big name school.
As an employer, I should know the schools with the best reputations in the areas for which I am hiring. In most cases, an elite university will not be the best option for the different professions.
Some large universities are known for certain programs that they offer. Or, there are an increasing number of smaller schools that specialize in certain areas. In looking for engineering graduates, my eyes would perk up at seeing a graduate from Harvey Mudd College. Whereas I might not get very excited for that Princeton student.
Finally, where you went to school is only part of the hiring equation. When you have no actual experience, your academic background does play a material role. But as you progress in your career, it is your technical skills, your experiences, and your personality that become the key factors in whether you get a position. Where you went to school becomes secondary.
Based on all this, I would not incur the cost just to attend an elite school.
But what would I do when selecting a school for myself?
Check back in a few days for that post.
As someone who has been involved in hiring new university graduates (business school) in Western Canada, I haven’t had resumes of “elite” university graduates cross my desk. However, I want to comment on what I look for when reviewing resumes of new grads. I want to see strong academic performance combined with extra-curricular activities that actually require commitment and effort and/or work experience. Given the nature of the position I am filling, I want to hire a new grad who has demonstrated that he/she can successfully do more than one thing at a time (e.g. academics + position on student council + part-time job). Note: Graduates who “pad” their resumes with extra-curricular activities that do not have substance should expect some potentially awkward moments in job interviews when they are asked to expand upon such activities.