Rich Entrepreneur’s Alternative to College

KATHERINE ONG
Opinions Editor

Isn’t college supposed to be where people go to achieve six-figure salaries in order to support a filet-mignon and Ferrari lifestyle? Not anymore, considering today’s lacking job market. In fact, a good number of students are heading off to college, only to end up with a crushing debt and a degree that is virtually useless in landing a job in the current job market. The paradox is that people go to college in order to pay off college debt. So why even go to college if it is so counterintuitive? This is the exact question business entrepreneur Peter Thiel presents to several promising students when he offers them one hundred thousand dollars to drop out of college and to achieve their dreams with a more direct approach in lieu of getting a college degree.

Although this initially seems like an extreme case of instant gratification, Thiel makes some valid points. At the moment, college degrees are not the all-access magical doors to opportunities as they are touted to be by everyone who had been fortunate enough to attend colleges when the myth was true. The job market is slimming down as of right now. Even highly prolific individuals with qualifications on par with men like Bill Gates are not unsusceptible to workforce downsizing. As a result, graduates everywhere are being disappointed by the lack of job offers after graduation.

Something that college degrees do guarantee is debt. Unless you are fortunate or accomplished enough to receive a grant, it is very likely that you will end up with a massive debt that estimates a total of at least around one-hundred thousand dollars, two-hundred thousand if you prefer private schools. Sure you could get a loan from the bank but you see, the thing about loans is that you will eventually have to pay it all back…with interest. Consequently, the future of a college graduate, with a crushing debt and no way to pay it off, looks pretty darn bleak. Meanwhile the interest rate never ceases to continue compounding debt.

In theory, the Thiel method has advantages over a college degree. Instant access to funds allows students to immediately put it to use to achieve their career goals. Additionally, the money is given scot-free, with no debt to repay later on, and can be invested in job opportunities that require an input of money to get the ball rolling.

However, this route is not ideal for everyone. Money cannot buy knowledge. For students who take the Thiel route, their options are more limited in comparison to opportunities opened by college degrees. Most non-entry level jobs require certain qualifications; a college degree is one of them. Additionally, careers that do not require some sort of specialized education are also very limited, so simply handing students money to abandon the education offered by college is not going to do them much good since by doing so, their career opportunities may decrease. The method is also highly risky because, if business plans do not quickly gain revenue and the money runs out, then the plan may become a bust. Individuals may be able to survive in such precarious situations.

Thus, the Thiel route has both advantages and disadvantages in comparison to a college degree. Whether it is the right one or not depends on the student’s ambitions and own ability to achieve them.