- Scott Galloway, a bestselling author and top-ranked professor at NYU's Stern School of Business, recommended that students defer college enrollment and take a gap year during the coronavirus pandemic.
- Galloway previously spoke with Insider's Sara Silverstein about his post-pandemic predictions for higher education.
- While top 20 universities will withstand and come back stronger after the pandemic, Galloway said tier-two colleges like Drexel and Fordham University might not survive the crisis.
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Students should consider taking a gap year instead of enrolling in the school in the fall, said Scott Galloway, a bestselling author and marketing professor at New York University's Stern School of Business.
Galloway's got a knack for predicting future trends. He was one of the first people to flag WeWork's IPO failure, and he also anticipated Amazon's Whole Foods acquisition a month before it happened
Now, Galloway is predicting that that COVID-19 will spur major changes to higher education. Galloway teaches brand strategy and digital marketing to second-year MBA students, and he's also been named one of the world's 50 best business school professors by Poets & Quants.
Galloway previously spoke with Insider's Sara Silverstein about his post-pandemic predictions. He said education is the second-most-disruptable industry following healthcare, and he expects some schools will not be able to survive the crisis.
US colleges are taking a hard hit and are near collapse right now. The coronavirus outbreak can cause a more than $100 million loss at some institutions, CBS News reported. Several institutions have announced hiring freezes, and others have had to reimburse dining and housing fees.
Moreover, a growing number of colleges that shifted to online classes are simply unprepared to create interactive e-learning experiences — which is exactly why incoming students should take a gap year, Galloway said.
"If you're contemplating showing up for fall as an undergrad, or thinking about an MBA, I think this is a wonderful time to take a gap year because we as academics need a year to figure this out," Galloway said previously. "[The pandemic] is what's going to create the absolute implosion in education, which I think will be good. I think a lot of students, and a lot of parents, are going to rethink the value proposition and decide to defer or take a gap year."
A gap year can mean better educational and career outcomes for students
If you're planning to enter school this fall, the business school professor recommends that you wait until the pandemic blows over. Plus, taking a gap year can be a positive thing for students.
"There's a lot of evidence showing that if your kid takes a gap year, he or she is more likely to graduate when they come back with better grades," Galloway said previously. "They need a little bit more seasoning, a little bit more maturity."
A lot of students are not ready for the competitiveness and intensity that comes with college, he said in an interview with Intelligencer. The professor said that students might perform better in school and in their careers if they deferred.
Galloway's argument is backed by research. Gap years have been gaining popularity in the US in the past several years, The New York Times reported. Harvard University, for example, saw a 33% increase in deferring students in 2016. MIT also reported a doubled amount of deferrals between 2009 and 2010, Business Insider previously reported.
According to a study by AGA, a nonprofit that accredits gap year programs, about 90% of students who take a gap year are also more likely to graduate on time with a higher GPA, CNBC reported.
Schools need time to adapt to the pandemic
Some schools might not survive the pandemic and all institutions need a game plan.
As undergraduate and business school classes go virtual during the crisis, people are realizing that Zoom classes without the campus experience is not worth the hefty tuition, Galloway noted.
"And we've all raised our prices in lockstep and preyed on the hopes and dreams of the middle class to charge what is the most ridiculous high-margin, expensive product that translates to debt on young people, which results in having a hamstrung economy where young people don't buy houses, they don't start businesses, because they are literally crushed with student debt," he said.
Galloway further explained that the disruption in education has been accelerated by the coronavirus, and that tier-two colleges like Drexel, Pace, or Fordham University might not make it out of this crisis.
The professor anticipates the emergence of "zombie universities," or schools that will rely on alumni donations until they're forced to shut down.
"I think a gap year in deferring 2021 is going to be what I'd call a disruptive but a terrible year for the end consumer, as we as academics try to maintain this hallucination that we can continue to charge what we're charging for a totally substandard experience via Zoom," Galloway said previously.
Nevertheless, Galloway thinks that the top-20 universities will be welcoming in more students and will come out stronger after the pandemic.
In a written post on Business Insider, he predicted big and small tech firms will partner with elite universities to offer 80% of a traditional four-year degree for 50% of the price. For example, MIT and Google could offer a two-year STEM degree.
"There will also be a reshaping of priorities as we take attributes that make us most human — the discovery, empathy, and emotional growth of a campus-based liberal arts education (a luxury only the wealthy will be able to afford) — and replace them with the pursuit of vocational skills and shareholder value," he wrote. "Big tech's impending march into higher ed will bring more learning to more humans, and erode our humanity."
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