Podcast Summary
Exploring Alternatives to Traditional College Education: Ryan Craig's book 'A New U' discusses costly higher education and introduces boot camps, income share programs, and apprenticeships as affordable, job-skills focused alternatives to college.
The traditional college education path may no longer be the only or best option for gaining necessary job skills and preparing for a successful career. Ryan Craig, author of "A New U: Faster and Cheaper Alternatives to College," argues that higher education has become increasingly expensive while not always aligning with the skills employers seek. He explores alternative education models such as boot camps, income share programs, and apprenticeships, which can provide real-life job skills in a faster and more affordable manner. The book challenges the assumption that a college degree is the only path to a good job, as this notion only became prevalent after World War II. The conversation on The Art of Manliness podcast delves deeper into these alternative education models and their potential to replace or supplement traditional college education.
The value of a college degree as a signal for employers: College education is seen as a necessity for employment but its cost can limit social mobility and cognitive skills may not significantly improve for some students, while underemployment remains a concern for graduates.
The perception of a college degree as a necessity for employment emerged due to its value as a signal for employers to hire the most talented and motivated young people. However, this has also led to college becoming a barrier to social mobility for many, primarily due to its increasing cost. Despite the investment in a college education, research shows that cognitive skills may not significantly improve for a substantial percentage of students. The focus on employment has become the primary concern for colleges, as underemployment can persist and limit opportunities for better jobs in the future.
Historical origins of colleges prioritize research and athletics over preparing students for workforce: Colleges prioritize research, rankings, real estate, and athletics over preparing students for employment, leading to high costs and employability issues for graduates.
Colleges and universities prioritize research, rankings, real estate, and athletics over preparing students for the workforce and ensuring their employment after graduation. Although colleges are aware that degrees serve as a filter for potential employees, they often don't take responsibility for helping students secure jobs. This attitude is rooted in the historical origins of colleges, which were not designed with the labor market in mind. Instead, colleges were initially established to train clergy. Today, the career services department, which is responsible for helping students find jobs, is often underfunded and under-prioritized within the institution. Unfortunately, colleges measure their success based on easily observable metrics rather than student outcomes, such as employment and income after graduation. Trustees, who oversee colleges, focus on research funding, rankings, real estate, and athletics when evaluating the performance of their institutions. This misalignment between the priorities of colleges and the needs of the labor market contributes to the high cost of college and the employability problems faced by graduates.
Challenges in Higher Education: Affordability and Governance: Despite increasing spending, higher education faces affordability issues due to rising tuition and student debt, while governance lacks clear accountability. The economy's digitization calls for colleges to teach necessary digital skills, but they're falling behind.
Higher education is facing significant challenges, particularly in the areas of affordability and governance. In many universities, there are numerous bottom lines, leading to a lack of clear accountability for leadership. Additionally, spending has increased dramatically over the past few decades, with a disproportionate amount going toward non-classroom expenses. The result is a student debt crisis, as the cost of tuition has outpaced inflation and wages. While a college degree was once an affordable investment, many students now graduate with significant debt that is not being offset by entry-level wages. The economy's digitization is another factor, as jobs requiring digital skills are becoming more common, but colleges are not keeping pace in teaching these skills. Overall, higher education is in need of reform to address these challenges and make education more accessible and affordable for students.
Higher Education Not Aligning with Job Market Needs: Graduates need digital skills for job visibility, but many colleges don't offer meaningful training. Employers use filters, graduates face debt and underemployment.
The current education system is not keeping up with the changing job market, particularly in the area of digital skills and software proficiency. Only a small percentage of colleges in the country offer meaningful training on platforms like Salesforce, which are increasingly required for entry-level jobs. Employers are using keyword-based filters to sort through a high volume of job applications, making it essential for graduates to have the necessary digital skills to be visible. The attitude in higher education that the curriculum should remain eternal and not align with the needs of the job market is a major issue. Students are graduating with debt and underemployed, and the economic situation for the millennial generation is severe. It's crucial to address this issue and focus on fixing the economic situation for the millennial generation to prevent a similar outcome for Gen Z.
Last mile training: Bridging the gap between education and employment: Last mile training is a new approach to education that focuses on delivering job-specific skills quickly and affordably, addressing the gap between traditional education and the workforce, particularly for high-skill, middle-skill jobs.
The traditional education system is no longer sufficient in preparing students for the workforce, particularly for high-skill, middle-skill jobs. Employers are struggling to find talent due to frictions on both sides, including cost and time for students, and the uncertainty of employment outcomes. Last mile training, a concept that upends the traditional left-to-right approach to education, starts with the job and delivers the skills employers are looking for as quickly and inexpensively as possible. This approach primarily focuses on digital skills training, reducing the frictions for candidates and increasing the likelihood of a good employment outcome. Last mile training originated with coding boot camps about seven years ago and has since progressed to even better deals for students. These programs teach students exactly what employers are looking for in a matter of months, and the outcomes have been impressive, with high placement rates into well-paying jobs.
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Both Harry's razor and Amigo's toilet seat replacement offer innovative solutions to common problems in daily life. Harry's provides a high-quality, irritation-free shaving experience with their five-blade razor and convenient blade delivery service. Amigo revolutionizes bathroom hygiene with their toilet seat replacement that uses water for cleaning instead of toilet paper. The Amigo seat comes with additional features like adjustable water temperature, position, pressure, and movement, as well as a fan for drying and a heated seat. Both Harry's and Amigo offer exclusive discounts for our listeners. For Harry's, you can get a $13 value trial set by visiting harryscm.com/manliness. For Amigo, you can save $100 by going to myomego.com/manliness. Additionally, boot camps provide an intensive learning experience where students gain both hard and soft skills through real-world projects. These projects are often provided by potential employers, ensuring a smooth transition into the workforce.
Income share programs: A new alternative education model: Income share programs offer students a risk-free education by eliminating upfront tuition costs and aligning school interests with employment success, while employer pay models provide a frictionless pathway to employment.
Alternative education models like coding bootcamps and income share programs are gaining popularity as they address the financial and employment risks associated with traditional university education. Income share programs, a version 2.0 alternative, eliminate the upfront tuition cost by having schools effectively lend money to students and taking a percentage of their income instead. This model aligns the school's interests with the student's employment success and provides income floors and caps to limit repayment. Employer pay models, version 3.0, represent the next evolution by having employers cover the cost of education and guarantee a job, offering a risk-free and frictionless pathway to employment. These models address the skills gap issue by allowing employers to "try before they buy," making entry-level jobs more accessible.
Outsourced Apprenticeships in Digital Economy Jobs: Apprenticeships are expanding into digital economy jobs through service providers, focusing on technical skills development in a short period. Students should consider a matrix of selectivity and affordability when choosing institutions.
Apprenticeships are expanding beyond traditional industries into digital economy jobs, but not through employer-led programs. Instead, service providers are offering outsourced apprenticeships, taking on the risk and investment in students' skills development. These providers assess cognitive skills through tests and interviews, focusing on creating technical skills in a relatively short period. For students considering college, a matrix comparing selectivity and affordability of institutions is suggested to help make informed decisions. The key is growing the number of seats in these programs and reducing hiring friction for employers.
The affordability of a college education is crucial: Consider a selective school if affordable, explore alternatives if not, and predicts future fracture between selective and non-selective universities based on outcomes
The affordability of a college education is a crucial factor in making a decision about which school to attend. If a selective school is affordable, it's worth considering due to the many benefits of a college degree from such an institution. However, if a non-selective school does not pass the affordability threshold, it may be a bad decision, and alternatives should be explored. The book discusses 250 faster and cheaper alternatives, which are not focused on traditional blue-collar jobs but rather on leading students to desirable careers. If a selective school is unaffordable, the author suggests bending the affordability rule and taking on more debt. Parents who have saved for college in a 529 plan may face penalties if their child does not attend an accredited university, but it's still a good idea to save. The author predicts that in the future, there will be a fracture between selective and non-selective universities based on their ability to produce good outcomes, and families may need to reconsider the traditional college pathway in favor of other options. Overall, the decision about which college to attend should be based on affordability and the potential for good career outcomes.
Shifting College Education Model: The traditional college education model may become exclusive, but prioritizing diversity and offering alternative, accessible, and affordable paths can benefit all.
The traditional college education model may shift in the next 10 to 15 years, making it more exclusive for the wealthy while offering alternative paths for others. However, it's crucial that selective schools prioritize diversity and serve those who will benefit most from their experience. Ryan Craig, author of "A New You: Faster and Cheaper Alternatives to College," suggests an unbundled education system where students can complete a fast and cheaper pathway to get a first job, followed by secondary and tertiary pathways. This system recognizes that learning is a lifelong process and aims to provide more accessible and affordable education options. To learn more about Ryan Craig and his work, visit UniversityVentures.com.
Explore the Art of Manliness website for valuable insights and advice: Review the 4,000+ articles on the Art of Manliness website, share the show, and commit to personal growth for a more manly life
Brett McKay encourages listeners to explore the vast resources available on the Art of Manliness website, which offers over 4,000 articles. He also appreciates reviews on iTunes or Stitcher and asks listeners to share the show with those who may benefit from it. Ultimately, the podcast aims to provide valuable insights and advice for men, and by spreading the word, more people can reap the benefits. Remember, staying manly involves being knowledgeable, supportive, and committed to personal growth. So, keep learning, share the knowledge, and stay manly!
