Why the world’s youngest self-made billionaire (and Stanford dropout) says college is not for everyone

Austin Russell dropped out of Stanford University in 2012 to start Luminar Technologies. (Image: @austin-russell-49913755/LinkedIn)

The traditional path to success often includes obtaining a college degree, but according to Austin Russell, the world's youngest self-made billionaire, that is not always necessary. Russell, who dropped out of Stanford University in 2012 to start his company, Luminar Technologies, believes that college is not for everyone.

Luminar Technologies, his tech startup focused on developing hardware and software for self-driving cars, is currently valued at an impressive $2.6 billion. Reflecting on his choice, Russell told CNBC Make It, "If you're wondering if I would have dropped out [without the grant], yeah. Absolutely. There was no doubt in anyone's mind."

“College is not for everyone,” he says. “It’s just sort of the traditional approach around what you do and what you’re supposed to do.”

While some may argue that a college degree is essential for success, a recent Wall Street Journal poll found that 56% of Americans believe that a four-year degree is not worth it.

Scepticism about the practicality of higher education has been steadily increasing over the years. However, experts still maintain that a college degree provides favourable outcomes, such as better pay and higher-skill job opportunities.

Russell challenges the notion that a college education is the only path to knowledge and success. "All this information is available at our fingertips now online. This is not something that was true 50 years ago, [but] it totally is true now."

Russell personally leveraged online resources to enhance his education, watching lecture sets for Stanford and MIT applied physics at an accelerated pace.

But the 28-year-old acknowledges that self-education requires initiative and drive. He emphasizes the importance of taking the initiative to seek knowledge independently, particularly for entrepreneurs.

Russell states, "There is no one that will be holding your hand along the way... You are directly accountable for at least all the things that are in your control."

Reflecting on his decision, Russell expresses no regrets. He believes that leaving college played a significant role in his early success, stating, "I've been very fortunate and thankful to see great success at still a very early age."

Russell joins the ranks of other successful business moguls who dropped out of college, including Steve Jobs and Bill Gates. Jobs left Reed College at age 19 due to financial constraints on his family, while Gates attended Harvard for two years before departing to build Microsoft.