Is University Worth it Anymore?

Summary

James Chani discusses the realities of attending university, addressing the financial burden of student loans, the value of a degree in the job market, and the importance of choosing the right major. He suggests considering a gap year to explore interests and gain experience, emphasizing that a degree should not be the sole focus of one's education.

Takeaways

• 🎓 James Chani suggests that the decision to attend university should be carefully considered, as it's not the only path to success.
• 💼 University education has evolved from being taxpayer-funded to a more business-like model where students pay high tuition fees.
• 💸 The cost of university education in England has significantly increased, with tuition fees now around £9,200 per year, up from £1,000 a year previously.
• 📚 Student loans are a significant financial burden, with the average graduate debt being around £36,000, and interest adding to this total.
• 💡 The idea that student loans are not a major concern is challenged, as the debt and interest can accumulate over time, even if payments are deferred until a certain income threshold is reached.
• 🌐 The value of a university degree has decreased as more people graduate, leading to grade inflation and less differentiation among candidates in the job market.
• 🏢 Work experience is often rated more highly by employers than academic qualifications, highlighting the importance of practical skills and experience.
• 🚀 Taking a gap year can be beneficial for exploring interests and gaining life experience, which can help in making informed decisions about further education and career paths.
• 📚 Reading nonfiction books during a gap year can provide insights and change perspectives on various aspects of life, including business and entrepreneurship.
• 🌐 Networking and joining societies in university can provide valuable connections and experiences that can benefit future career prospects.

Q & A

What is the main purpose of James Chani's video?

The main purpose of James Chani's video is to discuss the realities of attending university, including the financial implications, the value of a degree, and to provide guidance for those considering or preparing to go to university.

Why does James Chani believe that student loans may not be as big of a deal as some people think?

James Chani believes that student loans may not be as big of a deal because in England, there is a system where students pay back 9% of their income above a certain threshold, and after thirty years, any remaining student loan is written off.

What is the average debt of a university graduate in England according to the script?

The average debt of a university graduate in England is about £36,000, which includes both tuition fees and maintenance loans.

What does James Chani suggest as an alternative to immediately going to university after high school?

James Chani suggests taking a gap year as an alternative to immediately going to university. This period can be used for self-reflection, gaining work experience, reading, traveling, and networking to better understand one's interests and career goals.

What is the issue with grade inflation mentioned in the video?

Grade inflation refers to the phenomenon where grades are increasingly higher than they used to be, making it harder to differentiate between students. The Office for Students (OfS) suggests that three-quarters of grade inflation cannot be explained by improved student performance.

Why does James Chani think that a university degree might not be necessary for everyone?

James Chani believes that a university degree might not be necessary for everyone because many employers value work experience more than academic qualifications, and not all careers require a degree for entry.

What is the role of networking according to James Chani's perspective in the video?

According to James Chani, networking is important because it allows individuals to meet people they wouldn't normally have the chance to interact with, potentially leading to valuable connections and opportunities in the future.

What book does James Chani recommend reading during a gap year and why?

James Chani recommends reading 'The Millionaire Fastlane' by MJ DeMarco during a gap year because it can change one's perspective on money, business, and entrepreneurship, and help in understanding what one wants from life.

What are some activities James Chani suggests for someone to do during a gap year to explore their interests?

James Chani suggests activities such as reading nonfiction books, getting a job for work experience, traveling to gain new perspectives, and attending networking events to meet new people and expand one's network.

How does James Chani view the role of university education in the current job market?

James Chani views university education as a potential advantage in the job market, as it can provide a foot in the door, but he emphasizes that real-life experience and personal attributes are what truly matter to employers.

What is the significance of the gap year experience that James Chani shares in the video?

The significance of the gap year experience that James Chani shares is that it allowed him to reflect on his career goals, explore his interests in business and entrepreneurship, and gain real-life experience by starting a business, which ultimately led him to decide against attending university.

Outlines

00:00

🎬 Introduction and Purpose of the Video

James Chani introduces himself and the video topic, aimed at helping viewers understand the realities of university. He emphasizes the importance of choosing the right degree and shares his controversial view that student loans should not be a major concern. The video intends to provide a clear perspective on university education and its implications.

05:01

🏫 Changing Landscape of Universities

James discusses how universities have evolved, particularly in England where tuition fees have skyrocketed since the 1990s. He explains the societal and parental pressures to attend university and highlights that universities are now businesses selling degrees as consumer products. The presentation of university life as a fun and enriching experience often masks the underlying financial motivations.

10:15

💸 The Reality of Student Loans

James explains the structure of student loans in England, including tuition and maintenance loans. He highlights the average debt of graduates, which is compounded by interest. He clarifies that while repayment starts only after earning a certain amount, interest continues to accumulate, making student debt a growing burden over time. He also notes the repayment structure and the potential impact on long-term financial planning.

15:17

📝 Value and Limitations of a Degree

James addresses the issue of grade inflation and the oversaturation of graduates in the job market. He points out that while degrees are necessary for specialized fields, many employers value work experience more highly. He argues that a degree can get you a foot in the door but emphasizes the importance of developing relevant skills and experience.

20:21

🎓 Choosing the Right Path

James discusses the pressure to attend university and the common mistake of choosing the wrong degree. He advocates for taking a gap year to explore interests and gain clarity before committing to a degree. Sharing his personal experience, he explains how his gap year led him to entrepreneurship instead of pursuing a degree in acting.

🗺️ Maximizing a Gap Year

James offers practical advice for making the most of a gap year, including reading non-fiction books, gaining work experience, traveling, and attending networking events. He stresses the value of exploring different interests and gaining real-world experience to better understand career aspirations.

📚 Making the Most of University

For those already in university, James suggests networking, joining societies, and actively engaging in university life. He underscores the importance of building connections and gaining diverse experiences to complement academic achievements. He concludes the video by encouraging viewers to like, comment, and subscribe for more content on business, self-development, and personal finance.

Keywords

💡University

University refers to an institution of higher learning providing facilities for teaching and research. In the video, it is the central topic, with the speaker discussing the value, costs, and considerations of attending university. The script mentions how universities have evolved from being taxpayer-funded to tuition-fee based, affecting accessibility and the student experience.

💡Student Loans

Student loans are financial aids provided to students to help cover the costs of higher education. The script discusses the burden and implications of student loans in the UK, including the percentage of graduates expected to pay back their loans and the impact of interest on the total debt.

💡Tuition Fees

Tuition fees are the charges for higher education at universities. The video script explains how tuition fees in the UK have increased over time, making education more expensive and contributing to the need for student loans.

💡Interest

Interest is the cost of borrowing money, which accumulates on outstanding loans. In the context of the video, interest is a critical factor in student loans, as it adds to the total debt and can cause the amount owed to increase over time, even if payments are not being made.

💡Employability

Employability refers to the qualities and skills that make a person suitable for employment. The video discusses how having a degree does not necessarily guarantee employability, as employers value work experience and specific skills more than generic degree qualifications.

💡Gap Year

A gap year is a year taken off between high school and university or between academic stages for various reasons such as travel, work experience, or self-exploration. The speaker in the video recommends taking a gap year to gain clarity on career paths and life goals, using personal experience as an example.

💡Grade Inflation

Grade inflation is a phenomenon where higher grades are awarded more frequently over time, leading to a devaluation of those grades. The script mentions grade inflation in universities, suggesting that the increasing number of graduates with high grades reduces the distinctiveness and value of those grades.

💡Marketing Issue

In the context of the video, a marketing issue refers to the aggressive and potentially misleading marketing strategies used by universities to attract students. The speaker criticizes universities for treating education as a consumer product and students as customers.

💡Networking

Networking is the process of building and maintaining professional relationships. The video emphasizes the importance of networking in both university and during a gap year, as it can lead to valuable connections and opportunities in the future.

💡Work Experience

Work experience refers to the practical knowledge, skills, and expertise gained through employment. The script suggests that work experience is highly valued by employers and can be more beneficial than a degree in certain contexts.

💡Entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business. The video's speaker discusses their interest in entrepreneurship as an alternative to a traditional university degree, highlighting the value of real-life business experience.

Highlights

James Chani introduces his YouTube channel discussing the realities of university education.

The video aims to provide clarity on whether university is the right path for viewers.

James argues that student loans are not as significant a concern as they are often portrayed.

He explains the shift from free university education to a tuition fee system in England.

James discusses the increase in university tuition fees over time and its implications.

He addresses the societal and parental pressures to attend university.

James views a university degree as a consumer product and the university as a business.

He cites the IFS statistic that 83% of students may not fully repay their student loans.

James explains the structure of student loans in England, including tuition fees and maintenance loans.

He points out that student loans do not cover course materials and expects parents to supplement if necessary.

James discusses the average graduate debt and the role of interest in increasing total debt.

He explains how student loan repayments work in England, including the income threshold and percentage paid back.

James argues that the value of a degree has diminished due to the abundance of university graduates.

He mentions grade inflation and its impact on the perceived value of university degrees.

James suggests that work experience is often more valued by employers than degrees.

He shares his personal decision not to attend university and the reasons behind it.

James recommends taking a gap year to explore interests and gain real-life experience before university.

He provides suggestions for activities during a gap year, such as reading, working, traveling, and networking.

James concludes by encouraging viewers to make informed decisions about university and to make the most of their time there if they choose to attend.

Transcripts

I have had this conversation with so

many people that I thought if I was ever

gonna start a YouTube channel this would

be the first thing I'd be talking about

and here we are

hi everyone my name is James Chani and

if you're going university or you're

thinking of going to university or you

are confused and you're unsure of what

to do well you found the right video for

you because by the end of this I'm

hoping to give you a very clear idea of

what you may not be told about

University it will give you a good idea

of whether you're gonna go into the

right degree or whether that's the

degree for you to go in and just kind of

it hopefully it will help you is what

I'm trying to say I'm just doing in a

really long winded way it also may

surprise you that I don't think student

phones are a big deal should be a big

deal at all

considerations on whether you should go

without further ado let's jump into it

[Music]

so we're kind of sold a script that you

go to school you get good grades and

then you go to university and then from

university you get your job I mean

there's nothing wrong with that and

there really isn't it's just

universities have changed from what they

used to be an honestly there would be no

need for this video had it been during

my parents time right in England for

example universities were funded by

taxation which is taxpayers would be

paying for students to essentially go to

university so it would be free

it sounds good doesn't it eighty ninety

eight tuition fees were introduced and

it was based on your income it was about

like one thousand a year now in England

it's about nine point two K a year and

you might think oh that's strange

because if it was free before surely now

it's so much more expensive less people

would be going but no and we'll cover

why that is in just a moment everyone

looks it's just a thing to do right and

there's a lot of parental pressure trust

me I've been there there's pressure from

you know your friends because all my

friends were going off to university is

you get a bit of FOMO it's like what am

I gonna do cuz I'm stuck here with no

job and people are gonna think are this

guy's an idiot cuz he doesn't go you

know and universities really presented

to you as this very neat package they

come into your sixth form or your high

school or you go to their open days and

it's like oh look how great is the car

campus I've got all the people smiling

and it's parties and it's fun and all of

this will change when you see University

for what it really is which is a

business a degree is a consumer product

that's what it is it's you are going to

university and you're exchanging your

money or in this case you know someone

else's money is alone for this degree

this is the product that you're getting

when you see universities as a business

and you start to look at it from that

point of view

you're gonna start to see all the

intentions behind what they're doing

[Music]

so the IFS in england has said that i

think they expect 83% of students to pay

back their student loans in other words

there's an 83% chance that you're not

gonna be able to pay back your student

loan so what's going on in England you

kind of are given loans for two

different things you're given loans to

pay off your tuition fees and you're

also given maintenance loans this is for

essentially helping you live it's to pay

off your rent food that kind of thing

and that's sort of the amount you get

for your maintenance alone does depend

on your income it's important to note

that neither of these loans consider any

material for your course

so like books lab equipment none of that

is covered by those loans that's for you

to pay for yourself and if you don't get

enough of a maintenance loan they expect

your parents to kind of supplement that

that's important because some people's

parents aren't going to do that which is

really unfortunate the average debt of a

graduate is about 36 grand but there's

also one little thing that will probably

not be a friend and that's called

interest so you've got your principal

sum which is you know roughly 27 grand

or there abouts and then you've also got

the maintenance loans on top of that so

that's 36 K on average then you've got

interest which is a percentage of that

total sum and it's added on to the total

sum because obviously whoever's loaned

you your money wants to make money from

that essentially people hear about all

you got to pay back this massive loan

and they go oh by James hello you only

have to start paying that back when you

earn about 25 K a year so as long as I'm

not earning that much I don't have to

pay it back that's not how interest

works if you're not paying it back the

interest is gonna keep adding on so the

longer you sort of stay at home you know

doing whatever you're doing the more the

interest in the debt is gonna continue

to snowball and build up and build up

and build up so it's not a safe thing

though just because they say oh you have

to pay it back when you start earning

this amount so don't worry about it

is not a safe you don't trust me you're

still gonna be a cure in debt all that

being said student debt should not be

your biggest concern and let me explain

why now in England you can choose how

you want to pay back your student loans

depending on the plan that you're gonna

go for and there's a similar plan in the

US but the most common one in England is

you pay nine percent of your income

which is above the threshold to 25k year

that you're expected to earn a new pay

nine percent of any money that goes

above that from the income that goes

towards repayment so let me give you an

example okay and I've got one written

down here so let's say you're earning

40,000 a year so that's your income and

above the threshold that is fourteen

thousand two hundred and eighty so nine

percent of fourteen thousand two hundred

and eighty is one thousand two hundred

and eighty-five pounds a year which is

roughly a hundred and seven pounds every

month that you're paying towards

repayments for your student loan when

you've really low K it's not a long you

need to see kind of student loans is

almost just like an extra tax that you

have to pay because it will

automatically come off in England on

your income statement and once it's been

taken off it's been taken off on top of

that in England after thirty years your

student loan gets written off so if you

don't pay that total some amount in that

time it gets written off anyway so in

other words it shouldn't be your biggest

concern in fact if the only thing that's

holding you back at the moment from

going to university is you know bearing

in mind you're going for a degree that

you really want to do and you should you

need to go university you need to get

that degree to get into that career and

the only thing that's holding you back

are those student loans go just go also

it's worth noting that there's an

opportunity cost that 50k that you've

now spent towards repayment could have

been used for putting down a deposit on

a house or yeah that's what I can think

of

the point being you could have used that

money for something else but chances are

you may not have made that money without

the degree in the first place the most

important thing with student loans to

take away is that it's how the

university now perceives you so you're

no longer just the student you are

profit you are a customer that is very

important to know because it leads us on

to the next part

[Music]

universities really have a marketing

issue the Advertising Standards

Authority has already made complaints I

remember seeing this towards

universities and their marketing

material but here's the funny thing and

you may not know this but there was a

cap on the amount of students the

university playing my cap was removed

and now universities are open to let as

many students in as possible and the

reason why that is huge is because now

there is a major competition between all

of universities to get students through

the door this is why when I mentioned

earlier on how does it make sense that

when universities were free there were

less graduates than there were today

when it's far more expensive this is why

because after all you are a customer and

they need more of you because you give

them the money in order to fund

everything to university spend millions

on their marketing millions what's the

problem with all of this I mean so what

they're spending money millions to get

us all in if you're telling me James I

don't have to worry about student loans

what's the consequence well you're about

to find out

whenever something is scarce and there's

not enough of it

there's it immediately has more value

right whenever something is abundant

there's a lot of it it doesn't have as

much value that is really important what

we're talking about now because in the

70s and the 80s about I think was nine

to nineteen percent of young British

adults will go to university now the

number is about 50% there's a lot more

graduates now that's where there's this

hog there's this whole concern of what

is called grade inflation going on at

the moment and that is essentially

people's grades being much higher than

they ever used to be and you might think

oh maybe it's just that students have

gone smile well they did standardized

testing which is like IQ test and on

average it's remained about the same the

intelligence of students going to

university has been about the same so

why are grades increasing at the rate

they are

well the ofs which is the office for

students doesn't learn over

three-quarters of what is considered

this grade inflation cannot be explained

I think the amount of people that passed

with that pass now with a first or a 2:1

is something ridiculous it I've got it

here 75% of students achieve one of the

two top classifications which is a first

or a to 175 percent

there's no differentiating so you kind

of see where I'm getting at if there's

so many graduates the value of a degree

is no longer what it used to be

how employable are you now if you have a

degree I mean free up mist by saying if

you're looking to get into a specialized

subject you need a degree I if you're

looking to get into law if you're trying

to be as you know a surgeon a specific

type of engineer you're gonna want a

degree there's

it's very unlikely you can ever get into

those fields unless you start up your

own business and did it yourself

it's very unlikely you're gonna get into

those fields without the degree 58% of

employers rated work experience as the

most popular qualification among those

presented they agree that the classes of

degrees tell an employer a very little

about person on that note my personal

opinion on it is is this a degree can

look good on a CV and I think it can

definitely get you a foot in the door

but that's about as far as it goes in

your interview they really want to know

they want to see whether you've got the

resources that they're looking for

because you can be trained in university

but you may not be the right person to

train for a certain company depending on

the field that you're going into

with all that being said a degree can

still be valuable so then why didn't I

go

[Music]

as I said there's a lot of pressure from

your friends from family from society

they tell you you need to go University

and then people pick the wrong degree or

they pick anything that they can get

their hands on will they pick something

that they're not too sure about or they

pick something just for the fun of it

will they pick something because it's

one that parents told them that is the

problem this is a difficult one to talk

about because of the ages of like 18 19

20 21 you can't really know what you

want to choose as a career you don't

really know what you want I don't even

think of you probably know what you want

like it's a very difficult thing to ask

someone to do and it's this problem with

people choosing the wrong degree for a

subject that they shouldn't have just

take they shouldn't have taken people

take stuff just because yeah just

because they they had to they were

forced to kind of go into something

right how do you solve this issue

take a gap year a gap here is like this

golden period after you finish high

school six form and before you go into

university a gap here is the golden

period where you get this free time if

you so choose to have of kind of

exploring what you want to do and your

choices and also get a break from you

know you've spent all of these years in

in education so it's that little one

you're breaking take the gap here I

think of everybody that lasts for help

in this video I think there was only one

person who was an exception but all of

them said I wish I'd taken together all

of them for example up until the point

where I kind of finish sixth form I

always wanted to be an actor right it

was the thing that I would tell

everybody when I was I've been doing it

since I was a kid since I was a teenager

up until this point and I auditioned to

go to drama school which is like

University but it's very much drama

acting centered and I didn't get in and

so I was basically putting a position

where I was forced to take a gap year

and thankfully I did because that gap

year really allowed me to reflect on

what I wanted and gave me a much better

sense of direction of what I wanted to

do which is why I ended up not basically

going to university because I realized

during that gap year that I had a big

interest in business and

entrepreneurship and I realized that I

didn't really want to take a degree I

wanted to spend the three years that I

would have spent in uni instead getting

some real life experience and kind of

well things like this right like

starting up a YouTube channel starting

up a business that I've got in the works

at the moment in fact during that gap PA

I started a business with a good friend

of mine it was like a digital marketing

agency

a crazy saturated market but we started

out together we did it for about six to

eight months it was just us like cold

calling restaurant owners because that

was this all niche we were going towards

be corner on these restaurant owners

we'd be booking meetings with them we

would go in person and we try and pitch

these restaurant owners our services and

man I learned so much doing that so so

much doing that it wouldn't have been

possible if I didn't a leg up here and

if you're wondering okay what should I

even do during that gap year well I'll

give you some hints right now you kind

of want to start to like experiment just

experience different things and see like

what you're more inclined towards and

what you can potentially see yourself

doing as a career I don't even think one

year is enough to get a really good idea

I genuinely don't but it's what you're

given it's that golden period that

you're given in that time here's here's

some stuff you can do

the first thing you can do is read a

book or a few books and I know some of

you probably like rolling eyes groaning

but I think your books are so amazing

for helping you get an understanding of

different areas in your life I'm talking

nonfiction by the way not fiction I mean

I'm sure if you read Harry Potter of

your gap here you'd find enjoyable but I

don't know if it would tell you a lot

about what you wanted to do to study for

university or whether you wanted to go

I'm talking more like nonfiction airing

more on the side of like business

self-development that type of thing

which is essentially what this channel

is for remember to subscribe for example

one book that I read which was my

absolute favorite I'm gonna grab it now

actually was this book which is the

Millionaire Fastlane by MJ DeMarco I

hate the title of this book I sweat a

lot but it is this book completely

changed my perspective on money and

business entrepreneurship it really

really helped I read this during my gap

year and it was one of the reasons why I

decided not to go university because

this book really helped me understand

what I wanted from life and why I wanted

to get from it at least for the moment

in this current point in time that's

just one example that like reading books

is a great great advantage it helps you

get an understanding it can help you

change your mindset and kind of change

the way you think about certain things

but if you don't want to read there's

other things you can do another thing I

recommend in a gap view is get a job I

was working at a cafe during my gap year

not for a long time but for about a

month and a half I wish I had worked

more longer than that but during that

gap year I was also like doing some

courses like studying for acting because

I was still kind of deciding am i doing

this and I'm not doing this but getting

a job is really good again it's that

sort of work experience and life

experience you'll understand what it's

like to work in a work environment

whether you know you're working at a

supermarket one

or in a cafe or restaurant or maybe it

is an office job that you've got game

experience is great like it can it can

kind of help you again see what maybe or

how you feel with the whole structure of

a job and what this sort of dynamics of

a workplace is like another thing that

you can do is travel

everybody goes traveling on the gap here

it's like the thing that everyone does

if you have the money for it go for it I

think traveling is something that I love

and want to continue to do in the future

and it can help you sort of get a sense

for maybe again what you're looking for

what you want another thing is going to

networking events

which I know a lot of people kind of see

networking events as always like

champagne and you're munching cheese and

it's not like a lot of the networking

events you can go on websites like me up

comm there's also a forum on the other

ones there are other places if you just

google search networking events near me

you'll find them they they can be on

anything they can be on like a business

and real estate they can be like they

have like video game nights if that if

you're interested in that they have

creative writing stuff if you just have

a look you will see so many different

events in fact I've set myself a little

challenge for 2020 which is to go to one

networking event every single week but

the point of it is really a networking

event is a very good way of kind of I

like to finger solve hacks the system

right it allows you to meet people that

you wouldn't have normally have met in

that situation and it also pushes you

out your comfort zone like a lot and

that's always a good thing like it's

always good to write to some degree to

kind of push yourself to do something

you wouldn't have normally done there's

a few things you can do no gap here yeah

you got a lot of time trust me like your

gap here is a lot of free time to try

out a bunch of stuff by the end of that

you should have somewhat of a clearer

understanding of what you want to get

into again I don't think a year is

anywhere near enough to get that real

deep

standing now filly in university and

you're watching this video you probably

realize it's too late for the gap year

but what you can do I think to kind of

make the most of that opportunity is

again you can read books I always

recommend that I love reading so I just

I say this for anything it's my advice

for anything but you can also network I

think network in in university is a

great great although nobody in uni is

gonna be like whoa you know like

billionaire millionaire maybe they're

from way more families but there's a

good chance that those people that you

meet in university especially if it's a

really well-known University in US a

high reputation University there's a

chance that those people you meet aren't

going to do great things in life and

it's good to kind of know these people

not to use them but to kind of benefit

each other I think you're you're kind of

doing yourself a real disservice if you

don't try and network and talk to as

many people in your classes or in in

societies I recommend joining different

societies in university you're doing

yourself a disservice if you don't try

and meet people there and make some good

friends really buddy do study yes

there's great inflation but I still

means you've got you gotta put some work

and you gotta get your you you go get

that degree at the end of the day so

that pretty much concludes this video I

was was quite nervous about doing this

I've never done kind of ironic because I

wanted to be an actor but I've never

done a lot of you know in front of the

screen type of acting and it's also a

bit different when you're not really a

character in your sort of yourself but I

hope you enjoyed the video I hope it

gave you a good idea on whether you

should go to university and if you're in

university on the moment at the moment

what to look out for and how to make the

most out of that please give the video a

like if you enjoyed it it does help a

ton especially with the YouTube

algorithm comment down below if there's

anything you feel like I've missed or

you have any other questions or if

you've watched up to this point I know

this is a long video so please do let me

know down below hours

to all of it and if you're interested in

kind of business off development

personal finance that kind of niche I'm

still trying to figure out what I'm

doing here

but do subscribe because I've got some

awesome stuff planned on the way and

yeah I think that concludes today's

video I hope you have a wonderful day

peace my friends

[Music]