Need advice on graduate school decision

[seanw]

Cross-posted in the dorm.

I need some advice from you guys about deciding which graduate school to go to. I have been accepted into 2 masters programs so far: Stanford Management Science and Engineering (MS&E) and NYU Mathematics in Finance. I feel these are both very strong programs with their own (different) merits and am having a really hard time choosing between them.

Some background about me: I graduated in mechanical engineering from a top engineering school and decided that I wanted to do something else after undergrad. My academic interests include all sorts of applied math, computer science, and probability and statistics. I have also recently become very interested in the tech industry and entrepreneurship. I don't really have an interest in finance exactly, but from what I've researched, it seems like a good fit for me. The positions that interest me the most are in risk management and quantitative research. Finance also pays very well. Now onto the programs...

The NYU program is one of the top programs in the field of quantitative finance. It offers a very rigorous, structured program (not a lot of rooms for electives) that trains students very well to enter the field of quantitative finance. The program is very small (about 15% acceptance rate and class size of ~30-40). Students usually end up in the fields of trading, structured products, risk management, or quantitative analysis after attending this program. The location in NYC, the strong faculty that consists of many industry professionals (Peter Carr, Nassim Taleb, etc...), and the strong career services of the program has led to an 100% job placement record (including an internship during the program) in previous years. The starting job salary will probably be higher than from the Stanford program. Some downsides: the structured curriculum doesn't really allow for room to do other things. If I was 100% sure I wanted to do quant finance, this program would train me very well and would probably be the easy choice, but I'm not 100% sure yet. Another downside (don't know how much this matters) is, compared to Stanford, NYU is generally seen to be less prestigious. Although this is probably not true for applied math and specifically quantitative finance, the school overall is less prestigious.

The Stanford program is an interdisciplinary program where I can choose from 8 concentration areas. The ones that interest me are the Finance and Economics track, and the Organizations, Technology, and Entrepreneurship track. Basically the main strength I see in this program is that there is a lot of freedom. Besides a few core classes, I can take as many electives from different departments (math, statistics, CS, engineering, business, economics, etc...) that I want. Stanford also has this program called Financial Mathematics that I did not apply to. (I didn't apply because I didn't have a lot of the prerequisites at the time of the deadline). In the quantitative finance world, this program is probably on par with the NYU program, although some have mentioned that it is a little bit too theoretical and not practical enough. Since the MS&E program allows me to take a lot of other classes, I can basically complete the requirements for this Financial Mathematics degree, although it won't say so on my diploma. I could do similar things a computer science or statistics. Also, Stanford is very close to Silicon Valley, and as you probably all know is home of some of the great tech entrepreneurs. If I decide to go that route, Stanford would obviously be the better choice. Now the downsides: it's location in California makes it harder for students to get jobs and internships in NYC (this is first-hand knowledge I've heard from students in Stanford). Another thing is that the program is huge (~150 kids in each year). This is partly due to the fact that the program is so interdisciplinary (it is also home to the department of operations research for example). However, the acceptance rate to the program has been really high at about 40-50%, although the average stats (posted on their website) indicate the quality of students is still very high. Another downside I have heard is that the competition for finance jobs at Stanford is a lot more fierce since their undergrad population is generally very strong. I'll also be competing with other CS and Engineering masters or phd students that are looking for similar jobs in Finance.

Personally, I would really like to go to Stanford because I feel it might be a better fit for me since I'm still not 100% sure what I want to do. Some other not really relevant things that sway me include the better weather and just cuz it's freakin Stanford. However, professionally, I feel, and I've been told by people in quantitative finance, that NYU would be a better decision. I'll be able to find better jobs (i.e. more $$) more easily. The material learned may also be slightly better at NYU.

So, do you guys have any opinions on where I should go?

Cliffnotes Got accepted into Stanford Management Science and Engineering and NYU Mathematics in Finance masters programs. Both are great programs and I need help choosing between them. The Stanford program would leave my options more open and is my personal preference. The NYU program would be a better choice professionally, training me very well in quantitative finance and this would lead to better paying jobs.

[chisness]

I'd do Stanford cause you'll still have a chance to do finance, but people who are in it just for the money aren't gonna be happy. This will give you a chance to see what your real interests are.

[Preem]

If it were me, I'd opt for flexibility.

When I was applying to MBA programs, I went to a seminar and someone asked about MPA (Masters in Public Administration) programs.

The person running the seminar said that if you're absolutely sure that you want to work for a non-profit or government agency, then MPA might be preferable.

However, if you're not sure, then the MBA gives you more options, and you can most likely still qualify for an MPA-type position.

In terms of locations, you have an interesting choice - Silicon Valley or Wall Street, probably the two best locations in the country, depending on what you want to do.

I live and work in the heart of Silicon Valley, and while I genuinely enjoy visiting NYC, I'm not sure I'd ever want to live there.

[seanw]

Thanks for the advice guys. Appreciate it. I just received news that I got into the CMU Computational Finance program which makes this decision even harder. I really like the curriculum there though, similar to NYU, it is specifically geared towards finance. Is there anyone here that's in the industry and has any opinions about these programs?

[IronFly]

I work on Wall Street and I am an alum of the NYU mathematical finance masters program.

I think the program is fantastic. However, I was also certain when I applied that I wanted to live in NYC and work on Wall Street.

My fellow alums all have great jobs. We're now quants, risk managers, CDS traders, hybrid traders, asset management guys, commodities, and so forth. I trade equity index options myself. I-banks employ most of us, some work at the agencies or Barclays, some work at hedge funds.

If you want to be a quant on Wall Street I think Courant is excellent. I'm very glad I went through the program. It was my number one choice. I don't think Stanford will prepare you for Wall Street as well as Courant (although I am obviously biased). On the other hand, I think Stanford's a better choice if you decide to go to Silicon Valley.

If you want to go to Stanford, you should go to Stanford. It sounds like you've made your decision and want confirmation that its right. If its right for you, then its right.

[rsliu]

I did UG at Stanford and started a Masters there in Stat before quitting in the middle to join a hedge fund. I've taken a number of classes in the MSE program, both UG and G level.

In terms of all the plusses you mentioned, I agree with all of them (although the Fin Math program is no joke...prepare for some very intense math if you want to take those classes).

In terms of finding a job afterwards, getting into finance is hard but not impossible. It is true that you compete with a ton of smart, anal retentive overachievers who will devote every waking moment of their lives to getting into a BB Ibank (trust me, I went through this process very recently, and it blows). It is also true that if you are really dedicated, you will find some way to leverage Stanford's resources into a finance job. I know a lot of people who went through this, and no one really ever gets completely screwed over.

So it depends on what you value: if getting into finance is your number one priority in life then you should go to NYU. Otherwise Stanford is an excellent choice.

Also congrats on getting into both programs. You can't really make a wrong decision here.