Is University Worth it Anymore?
Summary
TLDRJames 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
🎬 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.
🏫 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.
💸 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.
📝 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.
🎓 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.
Mindmap
Keywords
💡University
💡Student Loans
💡Tuition Fees
💡Interest
💡Employability
💡Gap Year
💡Grade Inflation
💡Marketing Issue
💡Networking
💡Work Experience
💡Entrepreneurship
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]
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