1. Yes I'm sure.

2. Going down from T14, at which point would the return from the school not be worth giving up my scholarship?

Thanks for your reply

Okay, the way an economist would do this is with an analysis like this:

1. Look at the incremental cost of attending the T14. So, let's say you have 2 years and have to pay $30,000 per year in tuition each year. So, the ADDITIONAL cost to you of giving up your scholarship is $60,000 on the day you graduate.

2. Then, you take the greater earnings potential of going to the T14 and see if it exceeds $60,000, and if so, in how many years?

So, let's say, for instance, that graduating from the T3 gives you a 90% chance of working pretty much for the rest of your life for $60,000 a year. However, you also have a 10% chance of getting a really good job that will pay you $150,000 a year.

So, you weigh the salaries and your weighted expected salary is $69,000 per year if you go to the T3. (Yes, I know this is a grossly simplified model that doesn't account for wage increases which may be really good for those upper-tier jobs. It's also unrealistic given that chances are you'll either make an impressive salary, or an unmpressive salary and not likely something in the middle.)

Let's then say that the T14 gives you a 60% chance of working for $60,000 a year, and 40% chance of working for $150,000 a year.

You weigh the salaries and the weighted expected salary out of the T14 is $96,000.

Meaning that in a weighted model, the T14 is $27,000 a year better than the T3.

You're in a $60,000 hole at graduation because you gave up a full-ride. However, according to this model, sometime in your 3rd working year, you pull ahead.

Now, that having been said, this example is grossly unrealistic since you won't have a weighted-average salary. Chances are you'll either have a great job, or a not-very-good job at graduation, with not a lot of gradations in-between.

What you're paying for by going to the T14 is the INCREASED OPPORTUNITY TO GET THAT GREAT JOB AT GRADUATION.

All you're doing is improving your chances. If you go to the T14, and end up NOT getting the big money job, there's a distinct possibility that you'd have been better off (or at least not appreciably worse off) to stay at the T3.

However, if going to the T14 improves your chances and gets you that $150,000 a year job right after graduation, and you wouldn't have had that shot from the T3, then you're so far ahead it's ridiculous.

Basically, there's no guarantee either way. The better school just improves your odds of a good outcome.