Getting paid to drop out of college? These kids are going to need that $100,000 just to pay back the loans they've already taken, only now they'll have nothing to show for it. Now, if you're already about to fail out this is a great idea, but otherwise, I think it's really dumb. College is not just about learning, it's an experience in of itself, where we learn who we really are, what we really want to do in life, etc. Coming out of high school I thought I knew it all, I thought I could start my own company, I thought I wanted to be a doctor, blah blah blah. How wrong I was - I could not handle a company with the limited experience I had at that point in my life, and I ended up figuring out I really didn't want to be a doctor, but rather go into IT. And I'm much happier for it! Had I dropped out of college, and taken this guy's deal, I would've had no degree, and a failed company with a lot of debt. I'm not saying nobody can do it, there's many cases of those that did, but they are a vast minority - most people would fail miserably and then have no degree to fall back on, not to mention missing out on the whole college experience.
Only idiots would take this deal, and shame on this guy for offering it - unless his intent of course is to eliminate his future competition now :-)