As financial chaos whirls through the world, students and administrators at the Tuck School of Business await signs that might indicate whether the economic outlook is better -- or worse -- than commentators predict, as students prepare to enter the business world.
Tuck students, faced with the failure of several prominent investment banks and increasing volatility in the international markets, must make their own predictions about what the financial world will look like in two years.
"We're doing a lot of talking about how this issue is going to play itself out," Paul Granada Tu'10, a member of the Tuck investment club, said. "The fact that there's a bailout, the fact that there are guarantees by the government... do we think these artificial means are going to have an impact?"
Students are primarily concerned about the shrinking number of jobs and increased competition for the remaining positions because of the demise of investment banks such as Lehman Brothers and stronger regulations on highly leveraged and high-risk trading, Granada said. The displacement of experienced analysts from those firms, and their entry into the job market, has caused students to consider second and third options in case their first job choice falls through, he said.
Students have also been looking into opportunities in different areas of business and finance to keep their options open, James Brooman Tu'10 said.
"I think there's a lot more nervousness than there would otherwise be," he said. "I don't think there's been a huge change in people's perceptions, but that may change."
Brooman, originally from England, said that international students at Tuck have unique considerations regarding the financial crisis. In addition to deciding between different fields in finance and business for their careers, students from abroad must also decide whether job prospects will be better in the U.S. or in other countries.
"Despite the fact that the U.S. is having a bad time, Europe's having a worse time," Brooman said. "Because it's such a global phenomenon, what's going on now, I don't know that it's really changing the balance."
Worries about future employment notwithstanding, students said that being at Tuck during the crisis has given them a unique perspective on the last few weeks' economic news. In some ways, being at Tuck, rather than in the business world, has cushioned them from the impact of the crisis.
"I think the school has done a good job of recognizing that students might have concerns about what's going on in the economy, and have an open forum about those concerns," Sarah Albert Tu'09 said, referring to discussion groups with professors and deans aimed at working through students' concerns. "It's comforting to be at a place like Tuck at a time like this."
The allure of business school also seems to extend to students trying to decide whether to start their careers or pursue graduate degrees. Tuck's efforts to attract students have not been negatively affected by the financial crisis.
The first deadline to apply for Tuck's class of 2011 has not yet passed, so statistics for the applicant pool are unavailable. However, expectations for the incoming class are high, Dawna Clarke, director of admissions at Tuck, said.
"We're seeing a 25 percent increase in the volume of candidates that are coming to Tuck for an interview and class visit compared to last year at this time," Clarke said. "If anything, we're expecting this to be a big year."
Clarke said that, rather than discouraging potential students from attending business school, economic downturns tend to heighten interest in graduate schools. With fewer prospects for employment, more students pursue an MBA or take the Graduate Management Admission Test as a hedge against shifts in the marketplace.
"The vast majority of the students with whom I've interacted view this as a very positive time to enter business school," Clarke said. "The likelihood of the economy being significantly stronger by the time they're looking for employment in their second year is very promising."
Potential problems with financial aid for new students have not materialized, according to Diane Bonin, director of financial aid at Tuck. Although lending has tightened among some providers of student loans, Bonin said problems with loans or scholarships have not yet spread to prospective applicants, and no students have contacted her office to reassess their financial-aid arrangements.
"Everything has been, surprisingly, pretty calm," Bonin said. "I'm hoping there will be availability [of loans], but I'm keeping an eye on what's going on."
Students have realized, however, that stability now is not a guarantee for the future.
"There's some fear out there in the general population," Brooman said. "People are worried about being able to pay their school fees in a year's time. At the moment, it's kind of a look-and-see approach. Fingers crossed."
