Tuesday, April 30, 2013

Holy avocado student debt

I'm writing this on a Tuesday evening, having just realised that I took my last class in my graduate program today. But now is not the time to reminisce - that's in a few weeks.

Instead, I'm going to talk about the heart attack I had earlier this week.

Since I'm close to graduation, the school sent me a reminder that I had to undergo Federal Student Loan Exit counselling. Oh, whatever, thinks I. I started doing it on Sunday.

Even though I had paid for one semester out of pocket and received two scholarships (of small amounts, but better than a kick in the rear), I'm looking at a debt burden of about $117K!

I personally hate debt. Some debt is good - mortgage debt, for example, because I get tax deductions on the interest payments. Technically student debt also gets some interest deducted, but I believe it's limited to $1500 a year. I had read a blog a while ago about a Harvard MBA who had paid off his $100K debt in 9 months - but he cashed out his savings, and didn't have anyone to rely on him. Unfortunately, when I graduate, I'm going to have to help maintain two households (my partner is enrolled at CMU also, but I'm probably going to be in California).

Immediately, I broke open a spreadsheet and started plugging in numbers about how much interest I'll end up paying in total if I just pay minimum, if I paid off early, etc. I also calculated what my monthly income would potentially be if I was on a $115K salary in California (holy 38% tax rate!) and what I could afford to dedicate to paying off loans, taking into account the ridiculous cost of living in the Bay Area.

Needless to say, it almost behooves me to draw up another blog to discuss my progress on paying that down, because it doesn't look promising.

There is a lot of chatter around in the media about the student loan bubble. Tepper increases their student fees by 3% or so each year, which is rather ridiculous. Someone told me that a lot of our fees go to pay for the PhD program, since it's one of the largest in the nation. I've already complained a lot about how I think Tepper is too expensive, so I won't jump back on that horse. Students aren't able to benefit from the record low interest rates - 6.8% flat is the government rate, and I believe 5% is the lowest private loan that anyone I've talked to has been able to get, and that was a variable rate loan pegged to the LIBOR. One of the scenarios I looked at for myself, I think was to pay back in 25 years, I ended up paying 150% of the loan in interest!

I did a calculation a while ago and came to the conclusion that the ROI timeframe for going to B-school was about 4 years. I neglected to take into account this crippling debt burden. If I was going to live in a reasonable city - let's say Pittsburgh - on that income, I would be able to pay it off rather quickly. Bay Area... not so much. But it's very difficult to find a job in the video game industry that isn't in California. The Tech Startup Boom is making things difficult for those who aren't making millions in stock options :).

The last comment that I'm going to make is going to resemble something thankful. I lived quite frugally over these last couple of years. I didn't go on any international trips, I kept my socializing and travel to a minimum, I lived in a cheaper part of town. A good number of my classmates went on every trip, went out every weekend, and engaged in other activities that would've cost a pretty penny. I can only imagine what their debt burden is. If they took out what Tepper had recommended each year, that's at least $140K. That recommendation didn't take into account all the trips and such, so there is a possibility that some students are looking at $150K or more.

Do I have regrets? A couple. But I think about it - that $3K trip to Peru for a week and a half ends up being a $7.5K trip if interest is factored in (at least). And all for what? Some memories and a couple of photos? Don't get me wrong, I'm all for travelling and experiences and such... but is it really worth having to keep paying off my student debt when I'm 53? It is too much - I'd rather do my travelling spending cash rather than credit.

Perhaps I'm just too boring, or didn't get to fully experience b-school. B-school is just 2 years of your life - that debt is going to linger for much much longer, and I'd rather not be in a situation where it could bite me in the butt.

Besides, I spent 3.5 weeks in Australia with my family and my partner and snorkelled the Great Barrier Reef. For everyone else, THAT would be the holiday of a lifetime.


Wednesday, April 17, 2013

Final Tepper Experiences

As I was writing the last post, I discovered a topic I probably should talk about.

So I'm well into my job recruitment phase, much much later than the rest of my class. Last set of statistics said that about 80% had job offers. I'm in that lowly 20% :).

I had my first interview in a while last week, and so I dredged up my old interviewing notes and revised over my STAR stories. I needed to desperately update them to include the stuff I did in my internship. Interestingly, I also found myself talking about the two big projects I'm working on right now - my Capstone and my Mobile App. In fact, my Mobile App project has become a staple mention in nearly every cover letter I write.

Even though we've been told it's OK, I didn't really like talking about my assignments at school. The Mini mester is not set up to be an immersive experience, so all assignments I do tend to be quite shallow. The Teamwork STAR stories I could generate wouldn't be very insightful, as we all tended to divide and conquer. While there have been some good assignments for personal insight, that's all they were - assignments. Things we had to do because we were assigned them, with a narrow band of requirements.

My pro-bono consulting experience at the end of Year 1 gave me some good stories, although I'm not too sure I would go through that again. Then, at the end of last year, I was part of a group who had to develop a Brand Strategy for an existing company. It was a local burger joint called Stack'd. At the end of it, we presented out findings in a presentation and report that the owners actually used. Look, ma, verifiable proof that I can do stuff!
Now, I'm wrapping up my Capstone project, and amazed at some of the things I've been able to do during this time. But more importantly, I feel that my Mobile project is a truly shining example of my education. If we get this published in June, I can now actually point to it and say - "I ran the team that developed that. I identified the features, the target market, and user testing." It is a physical (ahem) showcase of my work, that is very relevant to my career goals.

So many of my classmates haven't had this experience, or have been able to relay this experience in interviews. There is a lack of opportunity to do real projects that people can point to as evidence of their skills.

It makes me wish that there were more project opportunities (outside of tech and/or entrepreneurship).

Inter-campus teams

I just finished an assignment where I was working with a teammember from another school at CMU (ETC). We had to design a game together, playtest it, then write up the analysis of the game. It was due yesterday, and we got it in all well.

I recounted the experience to my boyfriend Chris - I wrote up the game rules and ensured the prototype was ready for submission a week ago, I wrote up the playtests and analyzed them, I rewrote the rules and the cards that went with the game, and created the Marketing document that we were also to submit. My teammate - he organized the playtests and put a rather half-hearted effort in with one of the card set designs. Chris said that I should've expected this. I gave him a quizzical look. He explained that Softs (a term meaning a mid-term presentation of sorts) are due next week, with Hards (the final presentation, I guess) due two weeks later, and everyone is on crunch time to get it done. The reason my teammate had teamed up with me is that he was hoping I would do all the work.

Looking back on it, yes, it did seem like I did all the work. I wasn't complaining about that when I was relaying the story to Chris. I was making a statement about how easily my teammate let me do all that. Normally, in my business teams, we'd all be chomping at the bit to get things done. There's a level of work output expectation that we all seem to have. It was rather different - I won't go so far as to say novel - experience to work with someone who wasn't so driven by such a high work ethic. While I've had my issues with teams in the past in this program, in general they've been very good to work with. I'm usually the organizer, getting people together like herding sheep. I didn't really enjoy it - so I was very glad when my teammate took that duty upon himself to be the coordinator of the playtests. Therefore, I felt it appropriate to continue to do the other aspects of the project - i.e. the deliverables.

Now, looking back on it, I can kinda see how I was taken advantage of, but we had the option of doing this project by ourselves and by the fact I avoided having to organize playtests was worth the team setup.

The next assignment is going to be interesting. I'm with a group of students from ETC, and we are required to make a pitch of a game to a publisher. We're to have an organization, roles and titles, and a budget. I'm a little afraid that my teammembers are just going to "let" me do all the business-work while they work on the creative side of things. I'd much rather it the other way around, since I already know how to draw up a budget; they may not. Learning experiences all around is necessary. We shall see.

Sunday, March 31, 2013

GDC Week

I've just spent the last week in sunny, warm San Francisco at the Game Developers Conference. While this post is not going to be exactly Tepper-experience-related, it is related to my own ambitions post-MBA.
GDC, as it's known, is a week-long conference for people in the video game industry. They had a Free-To-Play summit at the beginning of the week, which confirmed my attendance for the entire conference. There was also a Career Expo in the latter half of the week, which is what I've been waiting for all second-year to truly kick start my fulltime job recruitment experience.

Last year, I only attended the Friday Student day, as GDC coincided with Mini 1 finals. This year, it only fell in with week 2 of Mini 4, so I figured it would be all ok.

I learned a lot about the industry and the state it's in currently. I found that to be very useful, as I'm finding myself leaning towards mobile and social games in terms of career - where my MBA will be the most useful - as opposed to big studios where MBA is usually concurrent with either Finance or Marketing. The Free-to-Play (F2P) business model is also fascinating to me - I don't think I've encountered anything like it in any other environment, so it seems unique to video games. Being involved in the early stages of a successful business model is very enticing, I'll admit. I also discovered that a lot of Product Managers in this space assist in the actual game design - to try and integrate monetization methods primarily - which is also just as exciting. To be able to help design a game would be very very cool and tap into that creative side of me that rarely gets any light of day under normal working conditions.

On the other hand, I was a little disappointed with the Career Expo. I was there primarily to network and get a lot of opportunities for fulltime positions. My experience last year looking for internship was tepid - very few people had opportunities for MBA interns; the majority was full-time hire. And there were a lot of companies at the Expo. This time, it seemed that there weren't very many opportunities at all because the number of companies there were fewer! Casino games have become the Next Big Thing, and I really really don't like casino games.

Overall, it was a fun but exhausting week. I reconnected with a contact I made on LinkedIn last year, who I've been in regular email discussions with, and he's taken it upon himself to be a champion of me of sorts - absolutely amazing! I met a good number of people too, of which I have to follow up on.

It was rather sad to have to come back to school and this learning environment after having been immersed in the industry. I wanted to go back to work to apply the things that I knew, not just sit on them to be later forgotten.



As an aside - I am one of the 8000 Google Glass Explorers!

Wednesday, March 20, 2013

Last Mini Evah!

Well, folks, it's nearly it. This is the very last mini I need to take and then I've completed my degree. What a crazy, wild, exhilarating two years it's been.

A number of my classmates are in Germany for the study-abroad mini. I've been inundated with pictures of Europe on my Facebook account, making me extremely jealous. Spring Break is traditionally when most of the international treks happen, so I got Israel and Japan pictures as well, although those lucky people have come back by now.

Typically, this last mini is usually the easiest for second years. The majority have jobs, have completed all the degree requirements, and are just taking it easy waiting for graduation and the Real World. I'm not in the majority - my recruiting kicks in seriously next week with GDC, I registered for 7 (!) classes, and I'm contemplating making my app project into a side business.

I registered for the 7 last year, and have held stubbornly onto the idea that I can take them all. I wanted to take them all. However, yesterday I came to the serious realization that it would probably be better if I put my focus on a smaller number of things than a larger number. Three courses can't be helped - they're semester-long and carried over from last mini (Game Design, Capstone, Mobile App Project). One course is a requirement of my degree - Data Mining. That left three courses up for the chopping block. Two of them are OB-related: Strategic Human Resources and Organizational Change. The last is Capitalism, and it's taught by Allan H. Meltzer . I decided to drop SHRM after sitting in class on Monday. It's an interesting subject with a lot of good lessons to be learned, but the value I would gain from this class would be slim given the fact I will be so overwhelmed - and I'll just read the book instead. It is also heavy on teamwork - which isn't a problem normally, but I don't want to let my teammate down if I don't do any work. Organizational Change is up tonight, but I am also inclined to drop this one. It's a class I've been wanting to take for a year or so - when I last registered for it, the professor passed away during the break before the mini. Now his wife is teaching it. I'm also afraid it will be heavy on the teamwork

I'm not dropping Capitalism. It's a rare chance to be taught by someone so esteemed in the economic community, plus it looks like it would be a lot of fun.




Friday, March 15, 2013

Spring Break

So I've been on Spring Break for the last week or so, and I'm looking at the conclusion of this break with mild trepidation and annoyance. Like I'm sure many have before me, I came into this break with a lot of intention to catch up on various school-related things - such as designing my mobile app UI, learning how to code for Android apps, applying to jobs, and reading a book or two. I haven't accomplished a single thing.

I did, however, get to level 18 on League of Legends.

My Spring Break wasn't completely unproductive. Not only do I have Monday and Tuesday next week to catch up on all that I didn't do (oops), I returned all the cases I marked for an undergraduate class I am a Teaching Assistant for.

I think that grading papers is a much better experience of learning than actually doing the paper itself, for myself. There is no "right" answer for cases, but there is a need to show thought and reasoning behind every argument. The answer key that the TAs are given can be specific in some areas but intentionally vague in others. It makes for some difficulty in being consistent in marking.

But I found that as I'm looking critically at other peoples' work, I'm finding myself come to conclusions that I should have considered in other aspect - for example, the very first case that my class did, we were accused of just restating the case facts. I'm seeing examples happen in the cases that I mark, and while I add comments to the cases about this, I'm noticing my own ability to critically analyze the case. I'm always writing "why is this important?" in the case when people restate the facts. I realize that the authors are restating it because they feel that there is a knowledge implied in the fact - but we want that assumption out in the open. I also found myself remembering a phrase that a senior manager at my pre-MBA job would always say - "so what?" He had coached us to always answer the "so what?" question... and I need to remember that for every aspect of communication, from capstone to an in-class discussion.

it's a lesson I will need to incorporate next mini I think.

Tuesday, March 5, 2013

End of Mini 3

It has been a very long while since I last posted, but that is because a lot has happened over the past couple of weeks that has caused me to neglect my blog.

Everything people had been telling me was that year 2 was supposed to be a lot easier than Year 1. Ideally, one got a job early on, one didn't need to undertake as many classes, and there's a lot fewer extra curricular activities going on to be involved in (like case competitions). My experience has been dramatically different.

Firstly, I am still job-hunting. Granted, my industry doesn't start heavy recruiting until now, so most of my job efforts was reaching out to various people every once in a while to keep my network going.

Secondly, and most importantly, a lot of my classwork is project-based. When a class is homework-based, it's a lot easier to keep ontop of things because there is a clear, defined set of guidelines that one needs to accomplish - answer the questions! Likewise with exams - most of the work happens a couple of days before the exam. If it's individual assignments, that's even better since the only person who is relying on you is yourself! Not this mini for me, however.

My capstone is entirely self-directed. As such, my partner and I spent the better half of the mini floundering around trying to figure out what to do. My partner was a former project manager, so he fell back to habits that had worked with him in the past - schedule lots of meetings. I abhor meetings for the sake of meetings, so that didn't work out well with me either. It didn't help that I wasn't attending the "classes" set aside for us, since I had another class on at the same time that I was allowed to go to instead. I've worked with my partner before, and we've worked well together - but I think a lot of that is that I come up with the direction and the goals, and he performs the motions to get it going - this time I stepped back on this, my attention directed elsewhere, which made him feel like he needed to brainstorm ideas on how to monetize this technology. Needless to say, it didn't work out to well.. However, we did hit a turning point and jumped back on track. We just needed to define clearly the goals for the semester project, and now that we have it, it makes things easier to push forward.

The reason i had dropped my attention was because I was placing it in the project for my Mobile & Pervasive Development Class. While I had originally signed up for the 6-unit course, which was homework- and exam-based, I ended up enrolling into the full 12-unit course, which included getting a mobile app up and running. It's an app based on an idea I had - I went looking for this type of app or service and couldn't find it, and ended up in a team working on the project. I had taken ownership of it, so I took over the design role. It was ridiculously intensive, and I poured a lot of time and energy into determining the user roles, the use cases, and the UI. I need to continue doing this over the Spring Break - ideally, I can see a viable opportunity for this app to be somewhat successful. My work was rewarded somewhat - this is the only class I've had in which there was a $1000 prize for the best app, as considered by a panel of judges. My app was one of 3 finalists (as an aside, I screwed up the final round and wasted my 5 minutes pitching instead of showing off the app itself), and we received feedback both from other students and the judges saying they'd love to see something like this app become a viable product - they would use it! But this was a big concentrate of my time.

Another semester-long class is Game Design, which it too is rather work-intensive. It relies heavily on "playtesting" game ideas with a group of other people in the class. My playtest group have been only other ETC students, and they are in a campus by the river instead of the main campus. This hasn't proven to be an issue, since my partner is also at that campus, but they have little concept or grasp of the value of time to non-ETC students (especially MBA students). Getting the group together at one time is like herding cats. They work on semester long projects in designated rooms, and they determine their own schedule - so it's not unusual for me to turn up to a 4:30 scheduled play only to wait 2 hours while the others find their way in from other "just popped up" issues. This gets very tiring; I nearly lost it one time when I was taking time out to show them how to play a roleplaying game - I was the "expert" in the group - when I had other things that demanded my attention; and they pulled the same lackadaisical manner on me. Luckily I bring my computer and tell them that when they're ready, I'll join them, until then, I'm working.

Developing Star Performers and Market Research rounded out the classes I took for the mini, and neither was particularly intensive when it came to work requirements. That Mobile project just took all my energy, as did Capstone. Unfortunately (or fortunately), I still have to continue them into next Mini so there's not much of a reprieve. Regardless, I'm getting my money's worth from this degree!