It Is Not Bad to Be the Big Fish in a Small Pond: Revisiting the Double-Edged Sword Model of College Students’ Perceived Overqualification

School psychologists are concerned about underperforming students; however, a recent study calls attention to a group of college students who believe themselves to outperform other students: students who perceive themselves as overqualified. In this study, we revisited the double-edged sword model of college students’ perceived overqualification (POQ) by untangling the mediating mechanism between POQ, learning engagement, and life satisfaction. We also tested the interactions between the growth mindset and POQ. Two questionnaire surveys were conducted and attained some different results from previous studies: (1) POQ positively predicted learning engagement via the mediation of career aspiration and performance-approach goals but not performance-avoidance goals; (2) The positive effects of POQ on career aspirations, performance-approach goals, and learning engagement were weakened by the growth mindset; (3) The relationship between POQ and life satisfaction was nonsignificant. Relative deprivation negatively mediated this relationship, while generalized self-efficacy positively mediated this relationship. These findings enriched our understanding of how POQ may affect college students’ learning and well-being; in addition, we also provided initial evidence that a growth mindset is less beneficial for members of advantaged groups in academic settings. Based on our findings, we offered practical suggestions regarding POQ students in colleges.