Altucher: College Is A Scam And The College Presidents Know It Is

James Altucher of Formula Capital is against going to college.

“Yeah, think about it. I have two kids – what am I going to do when they’re 18 years old? Just hand them $200K for them to go off and have fun for four years?” Althucher told TechTicker.

Yeah right!

Some more choice quotes:

If took that $200,000 and put it in something that yields just 5% a year, believe me, I will more than outperform the supposed spread of – you know, that will generate about $2.8 million over the course of 50 year career as opposed to the $800,000 more that a college-educated kid supposedly makes.”

“Instead take a fraction of that money – give your kid $10,000 or $20,000 and let your kid start a business… 95% of them will fail, but they’ll certainly get an education – a more valuable education than spending four years blowing off classes and going to parties drinking beer or whatever.”

“Teach your kid how to be motivated – how to sell a product, how to build a network of connections. That’s going to be much more valuable than you wasting $200,000 dollars, flushing it down the toilet.”

Altucher has a point. But he also went to college, so he doesn’t have the experience of trying to succeed in a world of college grads (which he has – as a hedge fund manager and newspaper columnist) without a degree.

And then he gives an argument that’s harder to swallow:

“Everyone who’s hiring you got a college degree, so it’s a way they perpetuate the scam,” he said.

Come again?

“The cost of college in the past 30 years has gone up 10 fold. Health care has only gone up six fold. Inflation has only gone up three fold. Not only is it a scam – but the college presidents know it is a scam. That’s why they keep raising tuition greater than inflation or health care costs,” he said “How do you think they get $30, $40 billion dollars to invest?”

Here’s what our own John Carney has to say about college: it’s probably just a huge waste of money right now.

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