Jedi Academy Kylo Ren Mod
This was my original thought when I first saw the movie, but I decided to wait until some of the hype died down before posting it. I postulate that Kylo Ren went to the dark side because he was, at best, a mediocre Jedi.
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Here is how I believe things went down.
Luke started the new Jedi Academy and things were going pretty great. He has a bunch of students and is teaching them the ways of the force like Yoda taught him. But I also believe that Luke's academy was very different from the old academy in one way. He did NOT teach light saber combat, or at the very least he was withholding those lessons for students who earned and/or needed them.
I have a couple different ideas backing up this part of the theory. First being that significance placed on Luke's light saber, as if it is a rare thing. I understand it is also significant because it is Luke's but I think it is telling that it is not a new saber.
The second is Kylo's saber. He uses what is basically a crude light saber, one that is not properly built. A lot of the old order Jedi training revolves around creating your first saber. I believe Luke cut this out and therefore Kylo built his own, possibly using an incomplete holocron or something similar.

As for why Kylo built the saber in defiance of Luke's teachings, I believe it is because he was not a great force sensitive.
Kylo Ren Unmasked Mods
When we first see Kylo, he uses the Force to stop a blaster bolt mid air. This makes for an incredible badass looking scene. But what if that 'trick' wasn't hard? There is an old quote, that basically says even the greatest fencer can be disarmed by a trick he does not know. Another important detail is stopping a bolt is a DEFENSIVE maneuver, something maybe developed by Luke, whose school places importance on using the force defensively.
Throughout the rest of the movie, we see him struggle with the force. He doesn't commune with Vader's force ghost, he struggles to pull information out of people, he does poorly in a saber duel with novices, the list goes on.
So, putting these facts together, I sum up my theory as this :
Kylo is told all of life that he is destined to be great. He is lavished with praise as a child when he so much as takes his first steps. He is told stories of how awesome and great his mother, father, uncle, and grandfather were. About how powerful they are with the force and that he is surely going to be one of the greats. He is ballooned with pride, and maybe Leia and Han are somewhat absent as parents (Han not being the father type, and Leia running the New Republic). Now he enters the Academy with great pomp and circumstance. Unfortunately, while he is force sensitive, he isn't great. He tries the force lift, but someone can lift more while he struggles with adequate. He tries mind tricks, but always seems to be just short of convincing the guards whose droids they are looking for. Maybe he is pretty good at force boosting physical abilities, but that show off Chaz manages to edge him out every time.
Now he is getting frustrated, and can't find what he is good at. So then he thinks about all of the stories. About how his Grandfather was suppose to be a great warrior. About Vader's epic fight with Luke in Cloud City, or how he defeated the great Emperor. So he thinks, 'I'm great, I know I am, its just that my ~uncle~ won't give me a light saber because he knows I would be too great for him'. He starts fetishing the great warrior Vader.
With the seeds planted, Kylo beings to seek power. He finds Snoke, the Knights of Ren, and builds his cracked saber. He falls to the dark side, returns to the academy and slaughters everyone who made him look bad. EDIT : Kylo was able to dispatch the other academy members (who were better force users) because Luke did not teach combat (at least, not yet), and they certainly did not have sabers, so its a case of him being better prepared (also he had the Knights, who we know nothing about). Also he could have used a trap. As for why Luke himself didn't stop Kylo, well, that is probably for a different theory.
So there you have it. My theory on Kylo's journey to the dark side.
EDIT : A couple expansions and rebuttals to common comments.
On Kylo's performance in the saber duel - It has been pointed out repeatedly that Kylo took a shot from the Bowcaster and kept fighting. This is indeed a worthy feat as the strength of the bow-caster is shown to be tremendous. In my defense, I am a big believer in this comic showing Chewie's thought process at the time http://tysonmurphy.tumblr.com/post/136936953919/star-wars-7-spoilers-a-quick-little-comic-i . So while wounded, I think Chewie put a shot where it would not be fatal on purpose. Second I hold the force users to a higher standard, and there have been jedi/sith/whatever that have fought through more grievous wounds. Lastly, I interpret Kylo pounding on his wound as a way to focus his dark side power, as opposed to how other people interpreted it as him trying to stop the bleeding and/or the pain. Dark side users tend to draw power from pain, and that is how I saw it.
Concerning mind reading - Kylo does get information out of some people. But other powerful force users seem to be able to read others like open books while Kylo struggles.
MEDIOCRE! - (sorry) - Anyway, when I say Kylo was a mediocre pupil, I do not mean he was ~bad~ necessarily. I am using the word in its natural sense. I believe he was competent, just not GREAT like uncle Luke and grandfather Anakin. Maybe he even was great at like one thing (like maybe he is truly great at energy manipulation using the force, hence the blaster bolt), but he felt he was suppose to be great at EVERYTHING. Then he just wasn't. And then every time he came in second, or third (or worse) in class he slipped a little more until he finally snapped.

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Jedi Academy Kylo Ren Lightsaber Mod
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