Education planning has struggled for years to meet the college funding goals of upper-middle-class families. Now many advisors are shocking their clients by suggesting state schools instead of the Ivy League.
Running the numbers on many careers reveals that schools that cost $50,000 a year rarely deliver any financial benefit over those that charge less than half of that in tuition and fees.
If anything, the debt that many families take on -- low-rate and subsidized as it is -- can cripple many young adults as they try to start their working lives.
And if the kids get in over their heads, it's up to the parents to step in. The average new grad in 2010 owed over $25,000. The parents picked up another $34,000 in education debt.
For an upper-middle-class client who has plenty of money but still needs to be smart about retirement, that $60,000 speed bump applied in the peak of their careers can be lethal to the best long-term financial plans.
Advisors are recognizing this and taking a more active role in school choice -- practically by default.
It may shock your clients to hear that old-name schools may not be worth the money, but it's worth getting it on the table.