The Great College Scam, Part 2

[MJ DeMarco]

From one of our Fastlane Faves...

James Altucher

College is a scam

Must read!

As a result, for the first time ever, we are graduating a generation of indentured servants rather than the entrepreneurs, innovators, artists and inventors that America is known for (I have no self-interest in this — I’m obviously not shorting colleges, as that’s impossible – I just hate seeing American go down the drain.)
Forty-four percent of 2009 graduates are either unemployed or hold jobs that don’t require degrees. So, in other words, these millions of young people are five years behind their peers, and many are holding over $100,000 in debt. What a shame.

 

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[oddball]

entrepreneurs, innovators, artists and inventors that America is known for

I think I read in Ink that the percent of entrepreneurs that are foreign jumped from 14% to 29% in the past couple years.

 

[Hokoleskwa]

The slowlane keeps getting slower. Now you spend your first 20 years working to pay off what you already spent, nevermind saving for future expenses.

 

[Runum]

I'm an entrepreneur: College was invaluable - CNN.com

 

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[CEBenz]

That was an interesting article Runum. I just finished a class in Business and Social Media. I learned a few things, but more invaluable, has been having access to the professor who himself is a successful entrepreneur.

 

[Brander]

He was good at innovation, but had no business skills???

You learn business skills as you go, you ask questions and adapt to experiences. You read a book or two like MJ's one. I have a Bachelors in Information Technology and an MBA in international business. I forgot everything I learned and what I learned in the MBA was kind of outdated. I learn best by doing and there is no substitute for that, for anyone! My degrees look good on the wall, but my money is coming from my "street degree" - experience.

 

[Runum]

Perhaps his value system is different than yours? Maybe he was able to blend his college education with what he learned on the street? Maybe what is true for you and others on this forum is not true for everyone?

We all tend to see things black or white. Perhaps there are shades of gray here and some people do get value from formal education.

 

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[John C.]

I think there is a lot of truth in what he says. I love the Jim Rohn quote, "Get an education and you can make a living. Educate yourself and you can make a fortune."

I believe we are much too passive when it comes to education. Unfortunately our school systems no longer educate students. They stuff them with information which has become a commodity.

 

[Antonio.]

We all know the facts about college. The same amount of people if not more are going to continue to go to college. If these folks can't figure out the college trap and make it work for them, they won't never get rich!

 

[puckman]

We continue as a country to further develop the nanny state. There is no shame anymore to be 25 or 30 and live at home with your parents. These kids want a handout and have been raised being told that everything they do is ok. The problem is not just college, but society. Everyone is complicit. We will be Greece, people will riot when their "austerity" runs outs. Dont you like that fancy EU word for welfare? Austerity? It sounds so noble and tragic, as if Queen Mother has to step in and provide austerity to her sick children. Pathetic.

 

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[puckman]

I think I read in Ink that the percent of entrepreneurs that are foreign jumped from 14% to 29% in the past couple years.

but keep in mind the entrepreneurs, innovators, artists and inventors we/are classical trained, extremely smart, hard working, self disciplined. they would excel anywhere, by sheer will power. They learn the rules, bend them, and reinvent them.

I have a hard time telling kids not to go to college. If anything, I would teach them how they could go without having the debt. A process perhaps AJ.... I think I just thought of another ebook.

 

[Ska2free]

You have to consider that college is also a networking and 'branding' tool...in some ways you are purchasing that element more than any actual knowledge. Not to be too cynical, but in terms of equipping college students for entrepreneurship, the network and name will get them further than any Econ 101 class.

For example, if a kid graduates from Duke and wants startup funding, college has given him/her a huge alumni network (past alums, a dorm friends' dad, etc) that you just couldn't build otherwise. In addition, for big name colleges, just having that name on your degree will give bankers or financiers some amount of immediate (and sometimes unwarranted) confidence and openness to funding the opportunity.

I'm not saying that's how it should be, but to some extent paying for college is just paying for the network and the brand (one reason why tuition at Yale is far higher than tuition at Podunk U). So for an aspiring entrepreneur, it might be worth weighing how much value the college brand and alumni network offer in relation to the cost of student loans...

 

[healthstatus]

Fox has this....
The College Scam - FoxNews.com

 

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[PeteLife]

i can definately connect with this post. im currently a college student (about to be a senior in the fall). i am majoring in Electrical engineering. Even though i do have a full academic scholarship, i must say that most of what i have learnt about making a living, and earning an income has been through street knowledge. For me college has just been a maze that you are forced to go through, never finding the path to true value, but livng to the standards that the system wants. "GO TO COLLEGE AND YOU WILL BE SUCCESSFUL ...GO TO COLLEGE AND YOU WILL MAKE MORE THAN THOSE WHO DONT..." ...well im tired of that misconception. I find it hard to complete another year in this "system" because i find true knowledge thru the work i have already done in trying to create my own business. I want to work smart, not hard. and college is 4 - 6 years (engineering degrees generally take longer that the regular 4 yrs) that i could have been working on a business venture.

well ill just end this by saying that i am thinking hard about quitting college right now and to put all my focus on starting a business.

I NEED THIS FORUM OPINION. DO YOU THINK I SHOULD QUIT COLLEGE?
p.s. i am currently 20 yrs old (21 in aug), electrical engineering major, and i have one more year of college left.
may i also say that, i absolutely hate engineering but have more of an interest when it comes to business/entrepreneurship.

 

[moop]

Wow! I can't believe kids are paying so much for a college degree. Here in Aus, you're generally looking at 20-25k from a G08 public university. During your studies, you're fully supported by the government and apparently (don't quote me on this) you don't need to pay back your loan until you meet a certain income threshold.

 

[Ska2free]

Pete4life--
Search the forum, there are several threads with responses about whether to leave school.

I think that if you've already put several years in, and it's paid for by an academic scholarship, you would be foolish to forgo the one final year before finishing up. See it through, it's not that long, then focus on starting a business. If you already had a business up and running profitably (or on the verge of major profits), demanding so much of your time that you couldn't do both school and business, that would be one thing...but to give up just one year shy of a degree for the start up stage? That's not good decision making.

Not to be too harsh...sounds like you are thinking very open mindedly about your future options and kudos for that. Why don't you start brainstorming future business ideas while finishing your last year? Remember that starting a business can take many years, and like college, can get frustrating toward the end. Sticking with it and seeing it through to the end can be good practice.

 

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[Kal]

I agree for the most part. College is not worth it UNLESS you go into a profession.

A good book that I read is the Personal MBA. It is a great book on educating yourself which I believe goes hand in hand with the Fastlane.

 

[PeteLife]

--ska2free

thank you very much for your insight on this issue. \i understand where you are coming from and yes i have thought about just finishing my final year. you mention that i should spend this last year brainstorming future business, however i spent the last 2 years doing that, and i have so much in my mind right now that i just want to put into action. college has been in the way all these years not allowing me to accomplish any of these feats.

i am still considering it though, as i have until august to decide (when fall semester starts).
i know that going on my business venture is the way for me to go.
even though its great to have a degree, but whats the point of having it if i never plan on using it?
college just doesnt excite me the way it used to anymore, but whenever im executing a business venture, thats the point i feel more accomplished, not going to class building circuits. thats just not for me. \

i do understand your point though so ill take that into consideration...
now going to check out the other threads regarding this topic.

 

[Likwid24]

i am still considering it though, as i have until august to decide (when fall semester starts).
i know that going on my business venture is the way for me to go.
even though its great to have a degree, but whats the point of having it if i never plan on using it?
college just doesnt excite me the way it used to anymore, but whenever im executing a business venture, thats the point i feel more accomplished, not going to class building circuits. thats just not for me. \

It's your decision but if you have one year left then I agree with Ska2. There's no reason you can't start working on your fastlane plan while you get your degree. At least if you get your degree, you will have something to fall back on in case things didn't work out.

 

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[PeteLife]

Thanks Likwid24.
you made a good point ...
"if you get your degree, you will have something to fall back on in case things didn't work out. "

ill rethink my strategy again to make it in the fastlane, because i know that having a degree is a valuable thing.
im still considering all my options though.

p.s. Likwid24: I have been reading your progress thread about your invention. GREAT STUFF! ... very motivating. Ive actually read the entire thread twice and i respect your "just do it" attitude. i wish you success!!!

 

[healthstatus]

At this point, since you are so close I would recommend getting it. It shows the ability to finish and if you get in front of VC's at some point, they will be asking why you didn't finish when you are that close.

Use your electives to take classes related to the business you think you are going to start. Marketing, public speaking, business accounting, that sort of thing.

 

[Ska2free]

Here's another thought for you...
Could you take out a student loan, use the funds for start up? You'd have to be careful & keep it legal, but you can't beat the low rates and long terms if you need some starting capital. Obv you'd have to stay enrolled and finish your final year then, and I agree with healthstatus...pick up as many useful electives as you can: aim for high level biz or basic accounting, who cares if this screws with your gpa.

In addition to questioning by vc, bankers are also likely to be less likely to lend biz loans to someone w/o a degree than with. Ironically, having a student loan history (w timely repayment) will also help you get a biz loan down the road...better credit history.

 

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[PeteLife]

healthstatus and ska2free, thanks alot for your input. will be considering it alot differently now. at first i was at a 85% chance of dropping out, now that i am taking more into perspective based on these comments, im back to 50-50, more than likely ill be completing my final year now. thanks alot!