Peter Thiel Says We Have A Bubble In Higher Education-What Do You Say?

Written By: Robyn Shulman

Higher Education Bubble?

If you happened to miss the episode of 60 minutes last night, (you can view it here: http://www.youtube.com/watch?v=u7ZBOBZUyiU) there was a cover story about Peter Thiel’s 20 Under 20 Fellowship program.  In a nutshell, the program provides eligible students who are currently enrolled in college to compete for a chance to present an idea to bring to fruition within a 2-year period.  Thiel provides the winners of the scholarship with $100,000 as well.  The only requirement: participating students must drop out of college to pursue their entrepreneurial idea.   

Thiel believes “the bubble” has landed in higher education, stating that some plumbers now make a salary that is equivalent to doctors, while only 50% of new graduates have full time jobs.  The debt for student loans in the U.S. has reached $1 trillion.

Is it a matter of when or how the higher education bubble will burst?

Vivek Wadhwa, a professor who teaches at both Duke and Stanford, and who is also a former high-tech entrepreneur in the Triangle, says Thiel is sending out a dangerous message to the world about higher education:  that dropping out of college is okay.  

I see many sides and have many questions regarding this paradigm:

  • Students who have world-changing ideas should be given the chance to pursue their dreams.
  • There are still only a handful of Mark Zuckerbergs, Bill Gates, and Steve Jobs.
  • Is the program realistic?
  • How many of these students will succeed? How many will fail and then go back to school 2 years behind?  
  • Have we hit the ‘bubble’ in higher education?
  • How do we look at our country and say we are successful when we have $1 trillion in student loan debt, while only 50% of current graduates have full time jobs?
  • Are universities turning into fast, online, degree mills?
  • For traditional universities not offering fast track degrees, how will they survive in an online competing environment?

What do you think?  Is the bubble in higher education about to burst, or has it already?

higher education

In my opinion, a college degree is not worthless.  A college degree becomes worthless when it is not beneficial to the learning process of the student, and when employers do not value it.  Choosing the right college and course of study is a contributing factor to student success.  Many schools have lost their decent reputations, online learning is not highly valued by employers yet, and higher education is changing and moving as we speak.

On the other hand, I do like Peter Thiel’s idea, as it is provides a one time special opportunity for students who might possibly change the world as we know it. 

Toward the end of the segment, one of the scholarship students stated she was struggling in school because she was required to take courses in which she had no interest.  As a teacher myself, her statement re-affirms the fact that we must realize that our students cannot nor should not be molded from cookie-cutters.  Natural curiosity, creativity and the freedom to explore areas of interest create an environment for motivation, success and life-changing services and/or products.

For more articles about this topic, please visit: http://www.ednewsdaily.com/.

Higher education is still a gift.

higher education.

 

 

 

 

 

 

 

 

 

 

 

 




 

  • Anonymous

    No matter the college or its reputation. It is more important what you get from the experience than anything else. Higher education creates a framework for problem solving. As graduates progress through their careers they may not see an ROI that overcomes the debt burden within a reasonable timescale.

    There are more issues that influence the value of a degree after graduation. Fewer initail positions are available and start at a much lower monetary value compared to the baby boomer generation. The job market is still full of highly educated and productive boomers. Leaving less of a demand for current graduates. Predictively, a large portion of boomer generation is nearing retirement in the near term.(3-5 Years). Employers will need to replace them with educated and preferably experienced graduates. This demand would most likely be serviced by Gen X and Gen Y over the current graduates.

    Educational institutions run the risk of loosing their market. Their consumers are more likely to view them as in collusion with banking institutions to create Gen Debt instead of an educated workforce. This is not only an educational issue but a social issue that will take time to correct.

    If inital earnings are high it has a compounding benefit. Qualified graduates entering the market now are more likely take a job earning much less in comparison to previous generations. Those unable to secure a psoition will face substaintial delays in building their income base.

    Another contributing factor is the feel good approch to managing employees. A culture of making the employee feel good about their contributions to organizations instead of compensating them appropriately.

    I did not put my name to this in order to protect my position.

  • Catherine A. Rotello

    The bubble of higher education is wobbling on edge these days and may burst sometime in the not so distant future. The U.S. is making a muddle of things and being a veteran teacher and administrator, it is my interest to streamline bachelor’s programs to two years and eliminate all those classes that have nothing to do with the degree desired. The Associate of Arts general education degree is unnecessary, especially in light of the astronomical student loan debt that is draining unemployed graduates. It is time to revamp the program here!

  • Barb Geldersma

    I agree. A degree is important and college is not for everyone. Those that do choose college need to be very mindful of the major they choose. Certainly pursue fields of interest but be very mindful of later job opportunities. If studenta match interest with the cost some may make better choices. As for offering funds for budding inventors, why not? Not all great ideas come from higher education. It’s not an either/or thing. If you’ve got the guts and passion, take a risk. Higher education needs to look at its 4 year model where the first 2 years are just a repeat of high school general ed and then think about meeting the needs of todays kids. Same as high school curricula needs to be adjusted for today.

  • Dr. Robert Rundall

    I’m not sure that the bubble has burst, but with the current trends in education, it seems possible that it will certainly change its shape. While I, too, believe a college education is valuable in the long run, it seems that few colleges and universities allow students true academic freedom (contrdict a professor, and you’re likely to flunk the course). Of course,there are pros and cons concerning this argument, but the traditional well-rounded, liberal college education seems to have become more of a cookie-cutter, politically-correct education. College isn’t for everyone, but with the current cost of a college edcation, I think we’re likely to see a greater shift to online learning. We’ve already seen a similar shift in the number of students who choose to attend less expensive community colleges before transferring to four-year schools. It would seem that the consumers (students) are seeking to re-take the initiative in their own educational process, in an attempt to reduce the overall cost of a college educaton. Some traditional colleges and universities now offer online courses (some on a more limited scale than others), but I believe the trend is clear. Just as the personal computer introduced a paradigm shift in communication and information technology, I believe online learning to be the next paradigm shift in education. It may never replace the traditional college environment, but it will certainly change the way it looks and functions. It will certainly allow more freedom for student entrepreneurs to develop their ideas while they study for their degrees.

  • http://www.portner.us Hal Portner

    I contend that the design of higher education courses would benefit from adapting good practices used in professional development: i.e., having participants actively engaged as soon as possible, and as much as possible in a relevant, real-life activity/project. Theoretical underpinnings and other important aspects of the subject come into play on a need-to-know basis by relating such issues to the activity of the moment. For this reason, practioners provide reading materials and elaborate upon their content as relevant questions or situations arise. Yes, briefly introduce those important underpinnings that are necessary with the intention of presenting them in detail during later sessions when participants (students) are ready and curious.

  • http://CollegeBoundDirectioons.com Margee Greenfield

    I understand what Thiel is saying but I think he came off poorly…like a snob. Michael Szarek – President and Founder; College Counseling for the Rest of Us – said it much better at: http://cc4therestofus.com/2012/05/20/13th-grade/

60 ‘queries’.