When potential students think about college, they should ask themselves what they're hoping to get out of it. Analyze their life. Assess their majors. This is a major investment decision. Discuss possible returns, separating anticipation from reality.

“If a student wants to go back to school in their 20s, when they’ve made some money, traveled, and matured a bit, then go ahead,” Altucher said. “But a parent shouldn’t have to spend $50,000 a year for their kid to go to frat parties all day long.”

An alternative to college is becoming an expert at one area and offering your services. The best university in the world is called Google (GOOG). You can learn anything you want on the Internet, free of charge.

Read more: Why College Could Be a Bad Investment-Minyanville