Rae attended Northwestern University, although she did not complete her studies. While there, she met friend Cloris Leachman. Many years later, Leachman succeeded Rae on "The Facts of Life" for the show's last two seasons. At Northwestern she met several then unknown stars and producers, including Agnes Nixon, Charlton Heston, Paul Lynde, Gerald Freedman, Claude Akins and songwriter Sheldon Harnick. In a 2016 interview with Milwaukee Talks, she said about her decision in appearing in only dramatic television: "When I started out, I wanted to be a serious actor, I never thought I'd get into comedy." When a radio personality told her that her last name would not do, she dropped it, to her father's chagrin.