redcar777 wrote:If you want to go to grad school, then yes, you should apply.
You might as well pitch one in there, you might get a hit. I don't think failing a class is a disaster. In fact, I'd recommend applying to some schools you're not sure you're strictly qualified for (UW?) because, who knows? If you don't even try then you definitely won't get in.
I think there's a different question about whether it makes sense to go to math grad school in the first place if its not top tier. If you want an academic job, then you will need to get an advisor who can place you well in the job market. They exist at 2nd tier schools, but the further down the list you go, the more out of the loop you are. If you want to be a high school teacher, then a PhD will help you career wise... though I think most teachers get their PhD simultaneously with teaching. In general, math grad school is not good as professional school. You're typically better off just working the 4-6 years to develop your career directly rather than spending that time in school. The less prestigious the school, the more true this is.
On the other hand, grad school is fun, and math is fun, and if you don't mind living on a TA stipend, then why not?
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