Warwick VS Georgetown Economics PhD

[CDHE]

Warwick is in the UK and GTown offers a locational advantage that is hard to beat. Any advice on choosing between the two programs will help a lot.

[tutonic]

Copied from another thread asking Warwick vs something.

 

Warwick recently switched to 2+4 MRes + PhD programme (I think, something like 1-2 years ago), so placement-wise, there isn't any data relating to graduates from this new programme. That's something to consider, in case you don't know that.

[CDHE]

Yes, I read that but it does not help me much. :(

[leolin]

I received an offer from Georgetown but I decided to pass it because I'm not happy with their academic rigour and academic placement records. Also I suspect they are a bit bureaucratic, with their complicated instructions on how to accept an offer, how to get financial compensation for the visit day, etc.

 

I also applied for Warwick and never got interviewed, so I guess it's an implicit rejection. But I think Warwick is more rigorous than Georgetown academically, and it is less bureaucratic based on my previous communications with them. Their placements are unknown, so that's a risk.

 

Personally I would attend neither of these. But if you have to choose between these two and there are no other options for you, I would suggest Warwick if you want to have an academic career, and Georgetown if you plan to work in the industry.

 

But of course, DC is a far better place to live than Coventry, so unless you have a firm belief for an academic career, Georgetown might be a better choice.

[tutonic]

Yes, I read that but it does not help me much. :(

 

What I meant by that is exactly what leolin surmised, in his post above. Warwick recently switched to the 2+4 programme. Therefore, in terms of placement, there isn't anything to go on, since current placement data on Warwick wouldn't be indicative of the new programme's ability, since the old one was just 3 years of research, and little-to-no coursework requirement. So you need to really consider how risk averse you are. That being said, fundamentally, where you go to will depend on what kind of jobs you are aiming for, and also whether you wish to work in the US or the UK/EU.

[dogbones]

I would choose Georgetown just because I think the environment is more enriching and stimulating! Having strict regulations wouldn't bother me because it means they have thought out what they are doing rather thoroughly and that reflects competency. You can always be a visiting researcher or scholar at another institution during your PhD program too, so I'd say go to a place that will make your life better!

[CDHE]

I received an offer from Georgetown but I decided to pass it because I'm not happy with their academic rigour and academic placement records. Also I suspect they are a bit bureaucratic, with their complicated instructions on how to accept an offer, how to get financial compensation for the visit day, etc.

 

I also applied for Warwick and never got interviewed, so I guess it's an implicit rejection. But I think Warwick is more rigorous than Georgetown academically, and it is less bureaucratic based on my previous communications with them. Their placements are unknown, so that's a risk.

 

Personally I would attend neither of these. But if you have to choose between these two and there are no other options for you, I would suggest Warwick if you want to have an academic career, and Georgetown if you plan to work in the industry.

 

But of course, DC is a far better place to live than Coventry, so unless you have a firm belief for an academic career, Georgetown might be a better choice.

 

Yes, that is the exact impression I get from the two places. But these are my two choices. Also, any idea of what the living costs in DC is like? Will the stipend post-tax be sufficient?

[CDHE]

I cannot determine which place would make my life better. I have not visited either. :(

[CDHE]

My reply seems to have gotten lost.

 

That is exactly what I feel about the two programs. Do you think I should consider BREXIT? Also, in DC, post-tax the stipend that is available won't be enough, will it?

[leolin]

I don't think BREXIT will create too much turmoil in the academic sector, but if you do have an eye for the industry it might be some problem.

 

I think in the offer letter of Georgetown, they specify the tax rate for the stipend could be either 16% or 33% for foreign students (or something like that, please don't blame my memory). If it's 16% I think you are still able to live by doing more TA and RA jobs, but if it's 33% for you, that would be a bit too harsh.

 

I'm actually not sure about this tax rate: I did not see any mention of the tax rate from other institutions. But I also don't think the tax rate is unique for Georgetown.

 

If someone has an idea of what's going on with the tax, please clarify!

[startz]

The tax rate in the U.S. depends on your total income. If all you are earning is a graduate student stipend, it will likely be quite low--possibly zero. However, the university will withhold part of you earnings to pay possible taxes and you will have to file an income tax return at the end of the year to get the money back.

[CDHE]

Tax rate is 30%. 20K in hand, post tax. I don't think it's enough for DC. Is it?

[startz]

I doubt the tax rate in DC on a graduate student stipend is 30%.

[EXP]

I believe this is relevant to you:

 

U.S. source scholarships/fellowships are reportable only for amounts which are taxable. The taxable portion of a scholarship/fellowship is that portion which is not excludible from gross income as a "qualified scholarship" under IRC section 117. Withhold at 14% if the payee is in F, J, M, or Q nonimmigrant status. Withhold at 30% for payees in other nonimmigrant statuses. The student articles of some income tax treaties exempt scholarships/fellowships from U.S. income tax. (See Table 2 in IRS Publication 515 or 901.) The beneficial owner may claim the lesser tax treaty rate by filing Form W-8BEN with the withholding agent. The withholding agent will report the payment on Forms 1042 and 1042-S, even if the entire amount is exempt under a tax treaty.

 

From Federal Income Tax Withholding and Reporting on Other Kinds of U.S. Source Income Paid to Nonresident Aliens | Internal Revenue Service

[leolin]

Thanks for the clarification on the tax rate. It seems to me exactly how much of the financial support is considered 'taxable income' is a bit hard to determine. Might have to ask the Department for that.

 

How much stipend does Warwick provide for admitted students? $20k after tax in DC is a bit tough.

[EXP]

Thanks for the clarification on the tax rate. It seems to me exactly how much of the financial support is considered 'taxable income' is a bit hard to determine. Might have to ask the Department for that.

 

How much stipend does Warwick provide for admitted students? $20k after tax in DC is a bit tough.

 

Are you not on an F or a J visa? You should assume that all of the stipend you receive is taxable.

 

Based on this website, it looks like you will receive a £10,000 stipend for your MRes, then the ESRC will cover you after that: https://warwick.ac.uk/fac/arts/history/prospective/postgraduate/pgfunding/

[steaman]

Just to add my two cents: Coventry, UK is depressing af. I don't know anyone (except, maybe, Sascha Becker) from Econ department at Warwick who likes the surroundings.

[leolin]

Are you not on an F or a J visa? You should assume that all of the stipend you receive is taxable.

 

Based on this website, it looks like you will receive a £10,000 stipend for your MRes, then the ESRC will cover you after that: https://warwick.ac.uk/fac/arts/history/prospective/postgraduate/pgfunding/

 

Yes I'm from New Zealand and I'll come in on a J visa. I agree all stipends should be taxable.

 

Do you know what would be the applicable personal income tax rate for aliens?

[EXP]

Yes I'm from New Zealand and I'll come in on a J visa. I agree all stipends should be taxable.

 

Do you know what would be the applicable personal income tax rate for aliens?

 

I am not a tax expert, but based on the website I linked above, you should be taxed at 14%.

[EXP]

I am not a tax expert, but based on the website I linked above, you should be taxed at 14%.

 

Remember that this does not take into account FICA (7.65%) and state income tax for whichever state you reside in.

[startz]

Remember that this does not take into account FICA (7.65%) and state income tax for whichever state you reside in.

FICA generally does not apply to scholarship payments, but it does apply to pay as a teaching or research assistant.

 

Also remember that there is usually a large standard deduction before the 14 percent begins.

[EXP]

FICA generally does not apply to scholarship payments, but it does apply to pay as a teaching or research assistant.

 

Also remember that there is usually a large standard deduction before the 14 percent begins.

 

Good point.

 

However, I believe Nonresident Aliens cannot claim the standard deduction (unless they are from India or they take part in a tax treaty).

[startz]

Good point.

 

However, I believe Nonresident Aliens cannot claim the standard deduction (unless they are from India or they take part in a tax treaty).

A good point. I believe graduate students are resident aliens for tax purposes, Introduction to Residency Under U.S. Tax Law | Internal Revenue Service, but a careful answer is beyond my knowledge of tax law.