If you got into Harvard for a full ride and don't yet have a company with significant traction and upside (see Microsoft or Facebook, the early years), you'd be silly to not accept the offer and go to school.

I don't consider the CTO a scum for making a ridiculous offer, but I would consider the student an idiot if he accepted. An 18 year old Harvard kid should be smart enough to not make major errors like this.

When Bill Gates and Zuckerberg left Harvard, it was already clear that their companies would be successful. At that point their opportunity cost of staying in school was massive. Most of us will never have this high quality problem however, so don't follow in their footsteps if you're not in a comparable situation.