Billionaires invest in new Texas college

Billionaires back new college in Texas as public sentiment sours on higher education

What you probably already know: Billionaires are backing the creation of a new institution of higher education with the aim of shedding what they see as elitist, leftist dogma for an environment that “encourages meritocratic achievement,” according to a report in the Wall Street Journal. The University of Austin has only 92 students, but has already attracted more than $200 million in donations, something many small colleges can only dream about. One donation, of $35 million, was from billionaire Jeff Hass, who has also donated $46 million to Republican groups and campaigns, including Donald Trump.

Why? The new school is operating in a former department store in Austin, Texas, and its mission seeks the “fearless pursuit of truth.” The curriculum reportedly focuses on entrepreneurship and cites the University of Chicago as its role model. The college’s president, Pano Kanelos, has decades of experience in higher ed, including time as the president of St. John’s College in Annapolis and founded the Cropper Center for Creative Writing at the University of San Diego. He is a noted Shakespeare scholar.

What it means: Higher education isn’t exactly a growth industry right now — 500 nonprofit colleges and universities have closed in the last 10 years — so the formation of a new, well-funded institution is notable. The fact that the school openly mocks the protests and unrest at other schools over the war in Gaza with its statement: “They burn, we build,” is a testament to the frustration many are feeling about the state of higher education in the country. In fact, the majority of Americans are growing less confident in higher education institutions, and Republicans’ confidence has fallen the most, according to Gallup polls.

What happens now? The higher education space is at something of a crux point as many families weigh the rising costs with the potential outcomes. While a bachelor’s degree still results in better financial outcomes over time for most people, the upward trajectory has slowed and students now graduate with about $40,000 in debt, which can take 20 years to pay off. Meanwhile, other non-degree-granting groups like coding schools and certificate programs have emerged to scoop up students for whom college is too expensive or less appealing.