Dont know what to say

A school mate of mine, in US, calls up (I haven't talked to him for like 4-5 years)..

here is how it goes
Friend: Hi
Me: Hi ra
Friend: So, which department are you in?
Me: Civil
Friend: Civil?? I thought you were in Computers
Me: hmmm
Friend: So you in Austin?
Me: yes
Friend: Is it a city?
Me: Well, it is a big city . Capital of Texas!!
Friend: Are you doing a Phd?
Me: Yes
Friend: Laughs (I dont know whats so funny!!) and asks why man, how many years will you study?
Me: Hmmm
Friend: So how do they pay you for Phd?
Me: same as a student for MS
Friend: then why the hell are you not working?
Me: (I really did not want to continue any more.. but absent mindedly said) There are other things that matter too!
Friend: So, you from IIT and all why are you studying there?
Me: (What can I say!!) i told UT is a decent university
and eventually ended the conversation!!

Dont know what to make of it!!
But Life moves on