Forgoing College to Pursue Dreams

Thiel Fellowship draws stellar applicants who I suspect would be successful, college or not. I do wish more regular American high school students got the opportunity to do something similar, i.e., put off college for two years to work and explore passion. I won't go as far as to say college is a waste of time (it's still the most sure-fire route out of poverty for example). But a lot of people go at 18 because it's the next step and end up floundering. I believe we'd get a better return on higher education in the US if there were more regular and accepted opportunities for students to work for a year or two, then decide if college is the right next step.

The last few paragraphs of the article really brought an interesting light onto the subject. Most of the people I know who left college to start a business or to work somewhere in Silicon Valley had a remarkably privileged upbringing. They never had the worries about the financial or temporal investment into an education or any experience taking risks. I'm not trying to berate people who drop out of college for these reasons, but it's an important factor to keep in mind when truly analyzing their success.

I always find it ironic that Thiel, who followed one of the most risk-averse career tracks possible after high school (top undergrad + top law school + top law firm = guaranteed six-figure salary), is so whole-heartedly encouraging kids to not follow in his footsteps.

I question what the risk-weighted expected return for these kids ends up being, and how that compares to more traditional career paths. Thiel himself at least had the fallback option of a traditional career in case his entrepreneurial aspirations didn't work out. It looks like most of these kids already have a top college acceptance in had before accepting Thiel's fellowship, which gives them a backup option in the very likely scenario their "dreams" don't pan out. For kids who didn't have such backup options, I'd really question the rationality of pursing something like this.

I do question the broader movement to push kids from college to startups. I had the option of dropping out during college to work for a startup, and in retrospect I'm tremendously thankful I didn't take the opportunity. There is just so much risk of permanently prejudicing yourself for traditional types of work, and it's just a fact of life that very few startups are going to be successful to the point that it would justify forgoing those other opportunities.

The cynic in me is inclined to believe that the only ones who really benefit from this push towards startups, in the expected return sense, are the VCs. The VCs can hedge their risk between a number of startups to maximize their expected return. An individual startup founder cannot do that. An individual startup founder who is 19, fresh out of college, and has no safety net can do even less to minimize his risk, and has a lot to lose in the likely event that he fails.

> I believe we'd get a better return on higher education in the US if there were more regular and accepted opportunities for students to work for a year or two, then decide if college is the right next step.

For once the problem isn't with the colleges. Colleges, by and large, don't care how many years you took off between high school and college as long as you bring the right GPA and SAT scores to the table. At colleges that care about more than that (Harvard, etc) having interesting experience after high school can only help your admissions chances.

The problem is social acceptance. Too many parents have this silly notion that if a kid doesn't go immediately to college, he'll spend life as a barista. My wife studied in Europe for a year after high school, and she absolutely wants our kids to do something similar. She said that living independently for a year really allowed her to focus on school in a way she could not have otherwise.

Interesting idea. Similar to what the CFA designation does in the world of finance. A lot of college programs actually tailor their coursework to prepare you for the exams, which have a high failure rate.