Peter Thiel Is A Stanford Grad But Thinks College Is Such A Waste That He Offers $100,000 To Students Who Quit – Compares Education To Santa

Peter Thiel, the billionaire cofounder of PayPal and an early Facebook investor, has a complicated relationship with higher education. On one hand, he graduated from Stanford University with a philosophy degree and a law degree. Conversely, he thinks college is so overrated that he will pay students $100,000 to drop out.

In 2011, Thiel launched the Thiel Fellowship, a program that offers $100,000 grants to young innovators under 22 – but only if they ditch college to pursue their own entrepreneurial projects. 

Don't Miss:

• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest TODAY for just $0.26/share with a $1000 minimum.
• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

Thiel doesn't hold back when it comes to criticizing traditional higher education. He's even compared elite universities to "Studio 54 nightclubs," where the appeal lies in their exclusivity rather than the experience. Speaking at the Aspen Ideas Festival in 2015, Thiel said, "There's an incredibly long line outside and a very small number of people let inside," but once you're in, the value isn't all it's hyped up to be.

He's also pointed out the financial burden of a college degree, arguing that the cost of higher education has skyrocketed – tuition has risen over 400% since 1980 (adjusted for inflation). Worse, he claims this investment often fails to deliver meaningful student returns.

A 2011 article from National Review reported Peter Thiel's sharp critique of elite education, quoting him as saying, "In education, your value depends on other people failing." Thiel has argued that higher education is a bubble: "The true bubble is when something is overvalued and intensely believed. Education may be the only thing people still believe in the United States. To question education is dangerous. It is an absolute taboo. It's like telling the world there's no Santa Claus."

See Also: The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.

Thiel created the fellowship to disrupt this system. Each year, 20-30 fellows are selected to receive $100,000 over two years, along with mentorship and access to a large network of entrepreneurs, investors and scientists. The catch? They have to quit or skip college to take the grant.

The program has produced some notable success stories:

• Vitalik Buterin, cofounder of Ethereum, one of the most valuable cryptocurrencies.

• Laura Deming, who's revolutionizing the field of longevity and antiaging ventures.

• Austin Russell, founder of Luminar Technologies and one of the youngest self-made billionaires.

These examples showcase the kind of trailblazing talent Thiel hopes to cultivate – people who prioritize building and innovating over sitting in classrooms.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Of course, Thiel's approach hasn't been without controversy. Critics argue that the fellowship glamorizes dropping out of college, a risky move for most young people. Former Harvard President Larry Summers once called the program "the single most misdirected bit of philanthropy in this decade," according to The Crimson.

Others worry that Thiel's stance undervalues the broader benefits of college education, like personal growth, critical thinking and networking opportunities.

But Thiel stands firm. He believes universities are monopolistic, stifling innovation and the traditional four-year degree isn't the only path to success.

Thiel's fellowship isn't just about money – it's about sending a message. He wants to challenge what he sees as a broken system where students are saddled with debt and funneled into cookie-cutter career paths. For Thiel, skipping college isn't about rejecting education altogether; it's about reimagining it.

In his eyes, young people don't need a diploma to succeed – they need ambition, creativity and the freedom to fail.

Read Next:

• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!
• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.