Law School Discussion

How valuable is a full ride?

Re: How valuable is a full ride?
« Reply #130 on: March 23, 2006, 10:22:41 PM »
i think ill probably take a full ride if im offered one.  i figure that ill have an easier time justifying that next round of vodka and redbulls for a crew of hotties with my loan money and that makes the Stifman happy.

I thought you were the Stifmeister.

Re: How valuable is a full ride?
« Reply #131 on: March 23, 2006, 10:23:35 PM »
i think ill probably take a full ride if im offered one.  i figure that ill have an easier time justifying that next round of vodka and redbulls for a crew of hotties with my loan money and that makes the Stifman happy.

I thought you were the Stifmeister.

Stifman is synonymous with Stifmeister

stc34

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Re: How valuable is a full ride?
« Reply #132 on: March 24, 2006, 08:53:22 AM »


You always seem to pop up with some great points!

If your debt load is going to be either 125k vs 150k does that really seem like a significant diff? For me personally, if I can spend $30 on a good product and $40 on a great product, I'll go with the extra ten bucks.  It's a bad example.  But my point is that the diff. in debt load you'd be facing is not that big.  I think 'Nova is ranked better than Pitt, right? And it has the better rep in Philly? I believe you had also said you lived in the 'Nova area and would like to stay in that area.  Does 'Nova place better in Penn. than Pitt? If you're leaning towards 'Nova, that seems like the right choice.
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Economists would say this is a mistaken/ignorant understanding of money.  I've studied in economics courses how consumers see a difference between the gap in 125k and 150k compared to 50k and 75k, when actually 25k dollars is always the same amount of money.  Consumers should see 25k as 25k no matter what sort of numbers we're talking about. 

Re: How valuable is a full ride?
« Reply #133 on: March 24, 2006, 08:57:16 AM »


You always seem to pop up with some great points!

If your debt load is going to be either 125k vs 150k does that really seem like a significant diff? For me personally, if I can spend $30 on a good product and $40 on a great product, I'll go with the extra ten bucks.  It's a bad example.  But my point is that the diff. in debt load you'd be facing is not that big.  I think 'Nova is ranked better than Pitt, right? And it has the better rep in Philly? I believe you had also said you lived in the 'Nova area and would like to stay in that area.  Does 'Nova place better in Penn. than Pitt? If you're leaning towards 'Nova, that seems like the right choice.

Economists would say this is a mistaken/ignorant understanding of money.  I've studied in economics courses how consumers see a difference between the gap in 125k and 150k compared to 50k and 75k, when actually 25k dollars is always the same amount of money.  Consumers should see 25k as 25k no matter what sort of numbers we're talking about. 
[/quote]

even if it is economically ignorant to some nerdy numbercrunching professors, ill still buy tbe nicer product.  gotta look good dood!

Steve.jd

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Re: How valuable is a full ride?
« Reply #134 on: March 24, 2006, 08:58:01 AM »


You always seem to pop up with some great points!

If your debt load is going to be either 125k vs 150k does that really seem like a significant diff? For me personally, if I can spend $30 on a good product and $40 on a great product, I'll go with the extra ten bucks.  It's a bad example.  But my point is that the diff. in debt load you'd be facing is not that big.  I think 'Nova is ranked better than Pitt, right? And it has the better rep in Philly? I believe you had also said you lived in the 'Nova area and would like to stay in that area.  Does 'Nova place better in Penn. than Pitt? If you're leaning towards 'Nova, that seems like the right choice.

Economists would say this is a mistaken/ignorant understanding of money.  I've studied in economics courses how consumers see a difference between the gap in 125k and 150k compared to 50k and 75k, when actually 25k dollars is always the same amount of money.  Consumers should see 25k as 25k no matter what sort of numbers we're talking about. 
[/quote]

There is a difference though...think about it, if you want to buy a tv set for 100, and its 200, you just doubled the price, if you walk into Best buy looking for a 60" plasma thats 5 grand, and it turns out to be 5,100 that extra 100 is negligible

stc34

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Re: How valuable is a full ride?
« Reply #135 on: March 24, 2006, 09:14:44 AM »
You just  exemplied exactly the strange reasoning I'm talking about.  Doubling the price? You are assuming that the most important factor is "doubling" it.  Money buys the same amount no matter what-a $100 will buy the same thing even if you saved it on a 20,000 dollar car.  Of course the best example is with big amounts-the idea that saving $5000 dollars on a house or education is "negligable", but that $5000 is worth a lot if it's saved on a $20,000 car.  That five thousand will always buy you the same amount of stuff.

Steve.jd

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Re: How valuable is a full ride?
« Reply #136 on: March 24, 2006, 09:19:03 AM »
You just  exemplied exactly the strange reasoning I'm talking about.  Doubling the price? You are assuming that the most important factor is "doubling" it.  Money buys the same amount no matter what-a $100 will buy the same thing even if you saved it on a 20,000 dollar car.  Of course the best example is with big amounts-the idea that saving $5000 dollars on a house or education is "negligable", but that $5000 is worth a lot if it's saved on a $20,000 car.  That five thousand will always buy you the same amount of stuff.

The 5,000 may buy you the same amount of stuff, but if you can pay 3% more for a HUGE improvement, its worthwhile to most people.  Measuring everything in nominal terms ignores many facets of human reasoning.  People think in relative gains not in absolute gains

A person earning 15k/yr will be much happier, impressed, etc by a 5k/yr raise than a person earning 150k/yr

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Re: How valuable is a full ride?
« Reply #137 on: March 24, 2006, 11:39:38 AM »
25k is 1/6 of 150k, while it is 100% of 25k.

So if the difference is between 125k and 150k, vs. 50k and 75k, to me, there is a difference.  You're amortizing it out not as a pure 25k, but as part of a larger loan amount.

If I go from 125 to 150 as opposed to 50 to 75 in this instance, I'm not increasing my loan amount by 50%; I'm increasing it by 20%.

Re: How valuable is a full ride?
« Reply #138 on: March 24, 2006, 01:06:26 PM »
stc34 - what the hell kind of economics are you studying?  You are way off base here.  kevdog and steve are right - absolute differences in cost or debt or salary don't matter as much as relative gains.  As steve points out, a 5K raise means more to someone making 15K than 150K.  Why?  Because of Diminishing Marginal Utility.  Marginal gains mean more when you have little and less when you have more.  Same principle applies to debt, as kevdog notes: 25K more in debt means less when you already have 150K as opposed to only having 25K.

cyberrev

Re: How valuable is a full ride?
« Reply #139 on: March 24, 2006, 01:13:46 PM »
unfortunately, i can apply the concept of diminishing marginal utility to my hair