Stop Overpaying for College: Mike Munger on Transaction Costs, ROI & The Triple T Framework
- Jeff Hulett
- Dec 4, 2025
- 1 min read
I recently had the pleasure of sitting down with one of my favorite thinkers, Duke Economist and Political Science Professor Mike Munger, to dissect the "super complex" challenge of college decision-making.
As President of Personal Finance Reimagined (PFR), I know this choice is massive. College is more expensive than ever, yet there are more lower-cost alternatives—from community colleges to taking a gap year—that deserve serious consideration. The question isn't just where to go, but if you should go now, or even at all!
Mike, who literally wrote the book on "friction" with his focus on transaction costs (Triangulation, Transfer, and Trust), offered profound insights on the true ROI of a degree. We break down:
Why the "best college" isn't always the best investment.
How the success of community college transfer students offers a powerful signal of resilience.
The danger of confusing correlation with causation (Selection Bias—don't buy the Maserati to get rich!).
If you are getting ready to go to college, or if you know someone sending a child off soon, this conversation is a must-watch for understanding the true economic stakes. Don't let survivorship bias trick you into a $\$5$ million mistake!
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