Is University a Scam?

I was having lunch with a friend of mine the other day — we both graduated from university and went into marketing.

He said throughout his entire 4-year business degree, never once did a professor talk about getting leads.

Everyone who runs a business knows leads are the oxygen that keeps a business alive and allows it to grow.

Instead, most of his studies focused on high-level and abstract business concepts.

This begs the question… is university a scam?

For 99% of people, my answer is Yes.

And this is coming from someone with 2 university degrees.

My reasons for making this statement are threefold:

1. Lack of Intention: Going to a university is assumed to be the standard path for most people out of high school. It’s not judged intentionally by any of the parties involved — from administrators to teachers, and certainly not students. Few students plan their education intentionally, and less than half finish in just 4 years. [1]

2. Lack of Free Market Competition: Universities don’t compete in the free market. Public universities often receive government funding and are subject to regulations that private businesses in the free market are not, which limits pure free-market competition. The only competition that exists is between universities — not any other business in the free market. Many tax-free accounts exist only for education expenses and the state will only give an 18 year-old a $100,000 loan for university. Tax-advantaged accounts designed exclusively for education expenses, such as 529 plans in the U.S. Contributions to 529 plans grow tax-free, and withdrawals are not taxed if used for qualified education expenses. In the U.S., student loans are one of the few types of large loans that 18-year-olds can access with limited or no credit history, particularly through federal loans.

3. The False (and Costly Narrative): A strong narrative exists which states that a university education is necessary for landing a high-paying job. Social pressures exist whereby people who don’t go to university are seen as low status. In my personal experience, this is true; most of the people who decided not to go to university after high school seem to lack direction in their life.

One caveat I will add is that the counter-narrative of not going to university is a disguised attempt at gaining leverage over employees. Some companies hire individuals without degrees not just because they value skills over formal education, but because these employees often have less negotiating power. Without a degree, these hires may be less likely to demand higher salaries or frequently change jobs, giving employers a more stable workforce at a lower cost.

So why did I get two universities degrees? I originally dropped out of university after two months because I wasn’t learning anything useful and saw it as a waste of time. Later, I created a plan for completing my degree intentionally and earned my undergrad in one year. This is a principle I apply to all facets of my life and one which I recommend you apply as well — any endeavor you pursue should be done so intentionally. The reason most people get mediocre results from university is that it’s assumed to be a fast-track to success and therefore most people don’t put intention behind their actions.

Whether you’re a student in high school or university, building an agency, launching your SaaS product, or any other endeavor — it’s essential to understand exactly why you’re performing the actions you’re performing. The moment you begin living life intentionally is the moment everything changes.

-Eric Otten

[1] https://nces.ed.gov/fastfacts/display.asp?id=569