As the cost of a college education soars ever higher, private bankers are starting to deliver a harsh message to parents and grandparents: You may not be able to pay for it all yourself. The fear is that folks picking up the whole tab—perhaps more than $500,000 for two or three kids—may be putting the quality of their own retirements at risk.
“Students can always find ways to supplement their tuition costs via part time jobs, scholarships and loans,” says Katie Nixon, chief investment officer of Northern Trust Wealth Management. “And quite frankly, there isn’t a loan program available for retirement. Plus, I would note that ideally, education funding is accomplished through a coordinated, team effort among parents and both sets of grandparents.”
In other words, these are no longer times to go it alone, even for the wealthy Americans.