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Peter Thiel on college: "far worse than I even thought ... a lot of the students got ripped off."

June 06, 2025 / 01:01

This episode discusses student debt, university accountability, and the impact of financial incentives on education. Key topics include the rise of student debt, the role of universities, and the need for debt forgiveness.

The conversation highlights the staggering increase in student debt from $300 billion in 2000 to nearly $2 trillion today. The guest shares insights on how many graduates still struggle with debt years after finishing school, emphasizing that many feel they were misled.

There is a focus on the responsibility of universities and bondholders in addressing the student debt crisis. The guest argues that if only taxpayers are held accountable for debt forgiveness, it removes the incentive for universities to reform their practices.

TLDR

The episode critiques rising student debt and calls for university accountability in financial reform.

Episode

1:01
00:00:00
What have you learned getting people to quit school, giving them $100,000, and then how many parents call you and get
00:00:05
really upset that their kids are quitting school? I think the universities are far worse than I even
00:00:09
thought when I started this thing. You know, the student debt was 300 billion in 2000, it's uh it's basically uh close
00:00:16
to two trillion at this point. And then if you look at it by cohort, if you graduated from college in 1997, 12 years
00:00:24
later, people still had student debt, but most of the people had sort of paid it down. By 2009, the median person had
00:00:32
more student debt 12 years later than they graduated with. I do think a lot of the students got ripped off. So, I think
00:00:38
there should be some kind of broad um student debt forgiveness at this point who should pick up the 10. It's not just
00:00:44
the taxpayers. It's the universities and it's the the the bond holders. The bond
00:00:50
holders and and and the universities. If you just make it the taxpayers, then the
00:00:55
universities can just charge more and more every no incentive to reform what whatsoever.

Episode Highlights

  • The Rising Student Debt Crisis
    Student debt has skyrocketed from $300 billion in 2000 to nearly $2 trillion today.
    “The student debt was 300 billion in 2000, it's close to two trillion now.”
    @ 00m 11s
    June 06, 2025
  • Universities and Accountability
    The burden of student debt shouldn't fall solely on taxpayers; universities must share responsibility.
    “If you just make it the taxpayers, then the universities can just charge more.”
    @ 00m 55s
    June 06, 2025

Episode Quotes

  • I think the universities are far worse than I even thought.
    Peter Thiel on college: "far worse than I even thought ... a lot of the students got ripped off."
  • A lot of the students got ripped off.
    Peter Thiel on college: "far worse than I even thought ... a lot of the students got ripped off."
  • There should be some kind of broad student debt forgiveness at this point.
    Peter Thiel on college: "far worse than I even thought ... a lot of the students got ripped off."

Key Moments

  • Universities' Role00:08
  • Call for Reform00:38