Council Post: The ROI Of A University Degree: Is It Worth It?

I once received a LinkedIn direct message that said, “Please sir, only job, no money.” The sender clearly didn’t have the credentials to land him that job.

At the time, I was hiring for a tech syndicate that was looking for a vast array of data science talent that had proven their worth in the field. Some applicants had recently graduated, while others had pursued their master’s, and some even had their second doctoral degrees. However, not even the latter had much to show in terms of their portfolios. When they did, it was in textbook fashion rather than real-world applications.

I see this a lot on LinkedIn. Thousands of the same “this is a pen” visual recognition models are being posted every day as if it’s a notable achievement. In reality, it requires five minutes of copying and pasting code.

According to the most recent billionaire census (registration required), almost one-third of billionaires don’t have a college degree. Just going to college doesn’t guarantee employment or success. Would you hire a baker who learned multiple books’ worth of recipes, yet never turned on the oven? I believe that schooling isn’t equivalent to a tool, but rather a tool shop where you can equip yourself for whatever you are going to craft.

I talked to other industry executives, and we came up with the following framework for learning. First, you need to evaluate what you are looking for in a course, internship or university, as well as the return on investment (ROI) and your long-term goals. 

What you need:

• Fast and smart learning.

• A valuable network.

• Inspiration and purpose.

• Substantial knowledge.

What you have no use for:

• Meaningless certificates.

• Unrelated yet “mandatory” courses and credits.

• Unreasonably high tuition fees.

• Outdated, unapplicable and impractical knowledge.

The ROI Of A University

Do we just go to a university to satisfy our parents’ and other people’s expectations? Does it feel like a safety net? What do we actually gain from a degree?

Opinions are split. In a 2018 New York Times opinion piece, I read that “College May Not Be Worth It Anymore.” Gary Vaynerchuk has also shared his thoughts on the debate: “If you’re collecting college debt to be an entrepreneur, that’s probably a bad idea.” He added, “Pressure from parents is not a good enough reason” and predicted that “the brand of college will collapse in the next recession.”

My general perception, though, is that the play-it-safe option is to get a degree. Ask yourself, “What am I going to do without a degree?”

The Network Effect

The network you can develop, especially in prestigious schools, is not to be underestimated. In that sense, of course, university degrees can provide ROI, but how much of an ROI is situational and up for debate.

However, it’s no coincidence that many great project leaders are surrounded by similar alumni. After all, Mark Zuckerberg co-founded Facebook at Harvard, even if he didn’t graduate. Good schools can be a nexus of top talent looking to build things — both businesses and professional networks.

What Rags-To-Riches Billionaires Have In Common

There are plenty of rags-to-riches stories on the internet. These are people who went from uneducated, broke and even homeless to multicorporate executives, billionaires or presidents of their respective countries. What do they have in common?

1. Some of them did not graduate from college or even high school.

2. They had no or very little financial support. 

3. They didn’t quit after failure.

4. They relied on their common sense.

5. They didn’t listen to the naysayers.

6. Before achieving success, they had what would be considered unimpressive resumes.

The price of college has been increasing astronomically over the past few decades in the U.S. If you are not cut out to be an entrepreneur, don’t force yourself. College can be a safe option for future entrepreneurs and nonentrepreneurs alike. However, it may be worth considering the following: Instead of spending over $100,000 over four years, imagine resourcefully spending $25,000 every year to start a new business idea. 

Companies love to hire based on performance rather than past accomplishments. That tech syndicate I was hiring for said it would hire a cat if it was particularly skilled at coding. So, time to craft.