Thread: The Great College Scam

The first 5 minutes is all you need. I'm watching the whole thing now though.

Just finished watching the whole thing, great watch. This is something that's been on my mind the last while. I'm actually intending on stocking up on some gold and silver over the coming years just in case. You can't print that much money without something very bad happening eventually. I don't live in the States, but Canada is directly affected by the U.S. If it goes down, we're gonna feel it.

Originally Posted by xmartel

Just finished watching the whole thing, great watch. This is something that's been on my mind the last while. I'm actually intending on stocking up on some gold and silver over the coming years just in case. You can't print that much money without something very bad happening eventually. I don't live in the States, but Canada is directly affected by the U.S. If it goes down, we're gonna feel it.

I think we're past the time of silver or gold being a good buy.

Sadly too many people buy into the hype that college is all you need to get ahead in life. It's a business, that's all it is. What you take from it will decide whether or not it was worth it to you. Some people go to college to party and that's one hell of an expensive party. Don't get me wrong, education is great, but the idea of spending thousands to get a piece of paper saying you passed some classes is absurd. I've taken a few classes, and will be doing online school for game programming. That being said, I'm not paying one dime of it (I'm military) and everything I'm learning will be used to further my future business. So many people (including my mom) think that College will instantly grant you some amazing jobs. I remember reading in one of Robert Kiyosaki's books (I know I'll get some lashing for mentioning him) saying how schools just train you to become better employees. That's why you don't learn how to build a business, or how to invest your money properly or how badly you're getting raped on taxes. I hope to learn as much as I can in the field of my choice and offer much more effective education. Free, or for a small fee depending on the resources, but definitely not the exorbant amounts colleges charge these days.

I finally watched the whole thing -- whether you agree with the underlying premise or not (hyperinflation is coming) it was dead-on.

Originally Posted by Gonzosan

I remember reading in one of Robert Kiyosaki's books (I know I'll get some lashing for mentioning him) saying how schools just train you to become better employees.

No you won't. His quote is true and many of us (including me) believe RK's first book is a must read. There's a difference between advocating his message vs advocating the man.

I graduated college in 1997 with a Bachelor of Science degree in Forest Products Marketing. Basically the marketing of wood and wood related products. It took me 6 full years plus 2 classes in the 7th year. I had a total of over 250 credits when I finished. I only needed about 180 to get the degree. Total cost? Just a hair under $90K. This was at the University of Minnesota and my tuition was out of state because I was from Ohio.

My saving grace? I was on a full ride basketball scholarship and only had to pay for one of the last 2 classes the 7th year - about $1200 bucks. I milked it for all it was worth. Looking back now I realize how freaking lucky I (and my parents) was to be good at sports. I have three kids. The oldest is 10. If she doesn't want to go to college that is fine with me. I pray for a sports scholarship for her too. Time to practice!

I haven't got a chance to watch the full video (10min magic number for me), but I completely agree with the premise. College is becoming less and less valuable overtime. Twenty years ago, just going to college almost guaranteed you a better standard of living and lifestyle. Getting the all powerful "degree" allowed you to distinguish yourself from the pack which inevitably led to higher paying and better jobs. Now a degree has become a prerequisite that EVERYONE needs in order to even have a chance at certain positions - or have a substantial amount of experience. Thus, students these days are going further and further into their studies in order to distinguish themselves more and as a result, prices for grad/law/masters ect programs have gone up. The opportunity cost is beginning to outweigh actually going to college and many higher level degree programs.

I will give you an example. You pay 30k per year to get your undergrad to guarantee (more or less) that you will come out of school making 35k+ per year. You try to find a job but find that more qualified and experienced people are out there or maybe you are not making as much as you were hoping - so you decide to go to grad school! You do fairly well and get a masters/mba/"insert higher level degree". The problem is that there are more and more kids doing this these days which in return drives up competition and drives down wages for these more sought after jobs. This causes those more educated kids to settle for jobs that may have been attainable by undergraduates of the past. This spiraling effect is what will soon be the education bubble sometime in the future.

Don't get me wrong, I value the knowledge that I have gained through college. Although, given the experiences of several of my friends and myself, I think it might have been easier going a different route. I am sorry if anyone feels differently, but I think the best thing a kid can do in this day and age is find an entry level job and just gain experience.

(I may have been venting a tad bit)

Originally Posted by Akitoes

I don't speak from experience but paying out of your own pocket / taking a loan for a degree looks the same as buying a business that loses money for the first 5-10 years, competes in an overcrowded market, has no scale, requires the owner to work at least 40 hours a week, gets taxed at twice the rate of a normal business, cannot declare bankruptcy - which is truly scary - and cannot be sold.

This is a legendary post and a great analogy! Must save!

One thing I do presently, is teach bartending. I have a student right now, who never went to college but her and her ex husband together run a business that nets $5 million a year. She was good enough to point out that neither of them has a college education. The only reason she is learning bartending is because they are having a parting of ways and she's selling her side of the business. Their business is also a .com but, theirs has been set up in a way that they own a job. I just wanted to illustrate, yet again, that there is no real correlation between education and financial success.

Originally Posted by MJDeMarco

I finally watched the whole thing -- whether you agree with the underlying premise or not (hyperinflation is coming) it was dead-on.



No you won't. His quote is true and many of us (including me) believe RK's first book is a must read. There's a difference between advocating his message vs advocating the man.

Kiyosaki was my main inspiration for trying to go "fastlane", so I like the stuff he had in his books, not all. He rehashes a lot of the same stuff and sprinkles in new stuff here and there. I think "Conspiracy of the Rich" gives you good insight on how all of this is one big scam. Rich Dad Poor Dad was pretty great, probably one of few books I sat and read for hours at a time and finished within a day. None the less I have always and still do think that paying thousands of dollars per year to have someone "tutor" you with books and lectures is ridiculous. I think it's slowly coming along, but people will start their own types of educational places. I can't be the only one that thinks it's ridiculous that you need "core classes" which involve history, math, english and other useless classes that you should already have a good understanding of. Pisses me off that in order to get a degree in programming, I need to learn "ethics" and "mythology" in a class. History? How many history classes do you need? I never once said "well I'm glad I learned that in history class, otherwise I'd be lost in life". I would better appreciate college if they said "alright pick your classes, and we'll charge you per class". Have a set number of classes that will enable you to get a degree, so you won't have someone taking 13 useless classes and get an engineering degree. Anyways, that's my rant. If you're going to charge someone thousands of dollars, shouldn't I get to pick what I want to learn?

my parents are paying my full college tuition. i begin next year and plan to use the time to work on my fastlane plans and seek out opportunities. easy for me to say because i have nothing to lose, my parents said take it or leave it, i will be graduating with zero dollars in debt. they aren't going to give me the money to simply invest (or start a business), unfortunately. so whatever, ill make the best of it and hopefully get some ideas and experience for the fastlane. i probably would be feeling differently if I was responsible for paying the 50K/year myself.

Originally Posted by Double M

my parents are paying my full college tuition. i begin next year and plan to use the time to work on my fastlane plans and seek out opportunities. easy for me to say because i have nothing to lose, my parents said take it or leave it, i will be graduating with zero dollars in debt. they aren't going to give me the money to simply invest (or start a business), unfortunately. so whatever, ill make the best of it and hopefully get some ideas and experience for the fastlane. i probably would be feeling differently if I was responsible for paying the 50K/year myself.

I'm in the same position. But I chose to stick to state school in order to save my parents money because I didn't want to put $200k+ debt on them. I'm fortunate New York has a good system, but I still work part-time to pay for some of my living expenses. I agree that college teaches the slowlane mentality, especially since I study Business Administration, not entrepreneurship which some colleges offer as a major or concentration.

Originally Posted by Lamboman350K

After finishing up my first year in college I can most assuredly say many things.

1. A college is a business. They absolutely love your money and will try to take as much of it in every possible situation. I am not a sidewalker complaining that they are bad, but I am fastlaner analyzing how they collect and how they created many different streams of income. How can I utilize their formula and implement it into my fastlane business? I have met one professor that is the author of a textbook at my school, every couple of years he changes the version, and guess how much a new one costs? $110. Who is driving the fastlane? Who is the producer and who is the consumer?

2. The Slowlane is preached as if it were a brand new concept, and students still buy into this crap of job security and longevity. I can name one class that constantly did this and this is what my good friend told me. "You tend to selectively listen to information, you have different goals so you don't listen to sh!t here." He couldn't of summed it up better. If you are going to convince me that working for 45 years is going to lead me to prosperity, have fun. LOL
Victim mentality is present among my peers and it honestly makes me sick. If you speak out against victim mentality, you are the outcast that gets written up in opinion newspapers.(It's happened;quite an enjoyable experience.)

3. College does indeed give you a glimpse into the real world. It teaches you people skills, networking, and how to deal with different types of people. You can also begin to see the difference between street smarts and book smarts. I am an INTJ entrepreneur, which puts me in a unique position of analyzing situations and people in ways other cannot.

4. Opportunities are everywhere. College is a gold mine for business opportunities. College students love to complain and I already have a few business ideas I will likely pursue in the future.

Well said, Lambo. You really are wise beyond your years. I'm 26 and didn't realize a lot of this stuff until a year or two out of college (graduated in 2006). Keep sticking it to those Slowlaners! Haha.

Some speed for you as well ...

Completely agree.