Podcast Summary: The Game with Alex Hormozi
Episode: Throwback: College - To Go or Not To Go? | Ep 926
Release Date: July 18, 2025
Host: Alex Hormozi
Introduction
In Episode 926 of The Game with Alex Hormozi, Alex delves into a timeless debate: Should you pursue a college education or bypass it in favor of entering the workforce directly? Drawing from his extensive experience as an entrepreneur and investor, Alex provides a data-driven analysis to help listeners make informed decisions about their educational and career paths.
Economic Context and Student Debt
Alex begins by highlighting the staggering scale of student debt in the United States:
- Quote [00:00]: “1.76 trillion is more GDP than every country in the world besides maybe the top 10.”
Alex emphasizes that today's college students are shouldering debt amounts surpassing the GDP of most nations, raising concerns about their ability to repay.
He underscores the long-term implications of high-interest student loans, which are non-dischargeable through bankruptcy, effectively binding graduates to debt for life.
Personal Background of Alex Hormozi
To establish credibility, Alex shares his educational and professional journey:
- Quote [00:45]: “I went to Vanderbilt, which is a very good school... I graduated in three years magna cum laude.”
Alex details his accelerated academic path, leadership roles in fraternity and powerlifting, followed by a stint in management consulting.
He transitioned from a white-collar job to entrepreneurship, building a portfolio of companies generating over $200 million annually. This personal narrative sets the stage for his analysis of formal versus informal education.
The Value of College Education
Alex presents data on lifetime earnings based on educational attainment:
- Quote [05:10]: “If you do finish with a high diploma, about 30% better, 1.3 million if you have some college.”
He outlines incremental income increases from high school diplomas to professional degrees, illustrating the financial incentives for pursuing higher education.
However, Alex cautions that higher degrees do not guarantee superior earnings, as a significant percentage of advanced degree holders do not earn more than those with bachelor's degrees.
The Cost and Debt of College Education
Delving deeper into the financial burdens of college, Alex argues that the interest rates and longevity of student debt payments pose serious challenges:
- Quote [10:30]: “You're paying back $250,000. You're paying back 400, $500,000 in post-tax money over the span of your career.”
He highlights the compounded cost of student loans, questioning the true value of the financial return on investment in education.
Alex emphasizes that the decision to attend college should weigh the cost against potential earnings, using Warren Buffett's investment principle of evaluating the difference between what you pay and what you get.
Statistical Outcomes of College vs. No College
Analyzing probabilities, Alex shares:
- Quote [15:00]: “You have a 7.3% chance of making more than somebody with a bachelor's degree.”
He presents statistics showing the likelihood of surpassing college graduates in earnings without a degree, emphasizing that while possible, it's statistically uncommon.
For those who attain higher degrees, the chances of higher median earnings increase, but so do the associated costs and time investments.
The Role of Socioeconomic Status and Race
Alex explores how socioeconomic background and race influence the benefits of a college education:
- Quote [22:15]: “If you are a white person or an Asian person, you have no value add from college. If you are Latino or you are black, college does have a significant 30 to 40% increase in median earnings.”
He notes that for certain minority groups, college education provides a more substantial financial uplift compared to their white or Asian counterparts.
This disparity suggests that college serves as a crucial tool for socioeconomic mobility for underrepresented and economically disadvantaged groups.
The Argument Against College for the Wealthy
Surprisingly, Alex posits that college may offer less value to individuals from affluent backgrounds:
- Quote [30:45]: “If you already come from a highly educated family and you have higher socioeconomic status and you're not going to get favorable financial terms for paying for school, it makes less sense for you to go.”
He argues that for those who already have access to valuable networks and financial resources, the costs of college may outweigh the benefits.
Alex stresses that experience and real-world skills often hold more weight in the professional world than formal degrees, especially in fields not reliant on specific educational credentials.
The Value of College Networks
Addressing a common pro-college argument, Alex discusses the networking benefits of higher education:
- Quote [35:20]: “Do I think that for $50,000 a year I could buy into whatever network I want to be? If people making significantly more money than me with skills that I'd like to learn for $50,000 every single year for four straight years, to me, that answer is moot or even more in favor of just going the career.”
He suggests that the networking advantages of college can be replicated through other means, such as professional associations or personal investments in learning and growth.
Alex acknowledges the potential for valuable connections but questions the necessity of incurring substantial debt to access these networks.
Decision Factors Based on Background
Alex advises that the decision to attend college should be tailored to individual circumstances, particularly considering one's background:
- Quote [40:10]: “If you came from a lower educated, lower socioeconomic family and get financial aid to significantly, I would say 50% or more of that tuition, I would say go to college, you pay less for what you get and you get more than anyone else does.”
He encourages those from underprivileged backgrounds who can obtain substantial financial aid to pursue higher education for its potential to elevate their socioeconomic status.
Conversely, he suggests that individuals from privileged backgrounds may benefit more from directly entering the workforce, leveraging their existing advantages without incurring unnecessary debt.
Alternative Paths Without College
For those opting out of college, Alex outlines strategies to maximize their career and earnings potential:
- Quote [50:25]: “You should absolutely take money, take time and spend the majority of your day trying to learn. If you play video games all day and you just watch Netflix and you smoke weed in your parents basement, you're going to be the seven out of eight who lose.”
He emphasizes the importance of self-education, gaining real-world experience, and continuous personal development as alternatives to formal education.
Alex advises individuals to invest in their skills, seek mentorship, and remain disciplined to compete effectively in the job market without a degree.
Conclusion and Final Advice
Wrapping up, Alex offers a nuanced perspective, urging listeners to personalize their educational and career choices:
- Quote [60:40]: “Big picture, you don't need to stress you're going to win either way. If you're a winner, this will probably just get you there faster with less debt.”
He reassures that success is achievable through multiple paths, whether through higher education or entrepreneurial endeavors.
Alex concludes that both paths prioritize learning over merely earning, and encourages individuals to invest thoughtfully in their education—formal or informal—to build a prosperous future.
Final Thoughts
Episode 926 serves as a comprehensive guide for anyone grappling with the decision to pursue higher education. Alex Hormozi meticulously examines the financial, social, and personal implications of attending college versus entering the workforce directly. By sharing his personal experiences and supporting his arguments with data, Alex empowers listeners to make informed decisions that align with their unique circumstances and aspirations.