Nietzsche derived the existence of the subconscious from Leibniz and christened it the Id. This was later borrowed by Freud.

Nietzsche derived the existence of the subconscious from Leibniz and christened it the "Id." This was later borrowed by Freud (and is generally attributed to Freud). Nietzsche thought the Id is the source of true values. And he said openly "consciousness falsifies."
[It is true that Leibniz did originate this concept. He said that representation causes consciousness and not as people think that consciousness causes representation.]
Kant went further. He thought that Reason itself (i.e. the very essence of the faculty of reason ) falsifies. He got this from Hume. Hume based himself on one basic insight that he says over and over again and it is clear that all of his reasoning rests on the cornerstone of one basic principle. That reason itself can only perceive contradictions. But the way Hume said this is misleading for most people. Can you conceive or unicorns yes. Can you conceive of a square circle? No. This sounds like what Hume was talking about. But it is actually more profound. Does the contradiction of something imply a contradiction? This sounds like I can convince that 2+2=5 would not imply a contradiction. But this is not what Hume means. He uses the word imply the way it is used in logic today. Can you derive from the same fact two contradictory things? Then that is called implying a contradiction. This is an important difference. I can conceive of circular argument not implying any contradiction. But the way Hume means this is since I can derive two contradictory things from a circular argument it is therefore false.

This makes the fact that Kant based himself on Hume a lot more reasonable. Hume's point is a good point. The great philosophers today like Bryan Caplan and Michael Huemer definitely considered reason capable of conceiving a lot more stuff than contradictions. But this precisely the point of Kant. Kant definite expanded reason way beyond Hume.-He thought that reason itself can cross the border to see the existence of the thing in itself-but he said the character of the thing in itself depends on the observer. [Exactly like Quantum Mechanics.]

But Kant held that at a certain point Reason tries to go beyond its boundary into metaphysics. This is where I think that insanity comes from. Not consciousness like Nietzsche thought, but from Reason itself venturing where it does not belong.\

 Reason falsifies. But his approach was more along the lines that Reason coupled with another faculty he called Faith (or as philosophers call it  immediate non intuitive perception) does perceive the truth. Faith corrects Reason.

I realized after writing the above essay that it stops right where it ought to begin. So what is a young collage student to do? What does this say about the essence of life? What does it mean in terms of personal direction?

You need to find one basic moral value and stick with it at all cost. This has to be something of your own choosing. I can make recommendations but it has to be something that you believe in has the power to redeem you from evil and the sitra achra {the dark side}. But I believe that if you hold to even one basic simple moral value at all cost then you will be redeemed.