Ryan Craig, Managing Director of University Ventures and author of A New U: Faster + Cheaper Alternatives to College, discusses the rising costs of traditional higher education and explores alternative education models like boot camps and apprenticeships. He highlights the skills gap in the digital economy, the concept of last mile training programs, and the evolution of alternative education models that prioritize real-life job skills over traditional college degrees.
Traditional college education focuses on creating well-rounded citizens, not directly preparing for job skills.
Rising costs of college education lead to student debt crisis and underemployment for graduates.
Last mile training programs offer job-specific skills training to align with industry needs.
Deep dives
Need for New Education Models in a Changing Job Market
Traditional college education is becoming less effective in preparing students for today's job market. Ryan Craig discusses the disconnect between college education and job skills demanded by employers, leading to underemployment among graduates. Alternative education models like boot camps, income share programs, and apprenticeships offer faster and more affordable pathways to gain job-specific skills.
Challenges with Traditional College Education
Traditional colleges were initially designed to create well-rounded citizens, not to directly prepare students for jobs. Employers now use a college degree as a sorting mechanism, leading to the emphasis on college education for career success. However, research shows that many college graduates lack significant cognitive skill improvement, raising questions about the effectiveness of traditional higher education in today's job market.
Rising Costs and Student Debt Concerns
The rising costs of college education have led to a student debt crisis, with graduates often facing underemployment and financial struggles. The focus on employment outcomes is crucial, as the first job after graduation significantly impacts future career prospects. Employers increasingly prioritize practical skills over academic credentials, prompting a shift towards alternative training programs.
Last Mile Training Programs and their Benefits
Last mile training programs offer intensive, job-specific training in areas like coding, digital marketing, and business intelligence. These programs simulate real work environments, emphasizing teamwork, collaboration, and practical skill acquisition. By aligning training with industry needs, last mile programs reduce hiring frictions and enhance job placement rates for participants.
Considerations for Choosing Between College and Alternatives
When deciding between traditional college and alternative pathways, factors like selectivity, affordability, and future job prospects should be weighed. While selective colleges with good outcomes remain valuable, non-selective institutions with high costs may not offer favorable returns. Parents should evaluate different options and consider the changing landscape of post-secondary education for their children's future success.
Every year the cost of a four-year college degree goes up, forcing young people to take on massive amounts of student debt for an education that often doesn't even prepare them well for the jobs of today. My guest today argues that there’s a better, cheaper, and faster way to prepare for gainful employment.
His name is Ryan Craig, he's the Managing Director of University Ventures, an investment firm reimagining the future of higher education, and the author of A New U: Faster + Cheaper Alternatives to College. We begin our conversation discussing the disconnect between a college education and the job skills employers are looking for and why higher ed continues to get more expensive each year. Ryan then digs into alternative education models that include boot camps, income-share programs, and apprenticeships that are not only faster and more affordable than college, but also put an emphasis on real-life job skills.