Some countries have both systems. A network of public-funded universities, in which admission is controlled via standardized tests, plus private ones, in which

Some countries have both systems. A network of public-funded universities, in which admission is controlled via standardized tests, plus private ones, in which the government subsidizes the monthly fees of many students in several ways. And both work to a satisfactory level. I'm particularly grateful of how I've been actually paid to study for the majority of my two Bachelors, my Masters and now my Doctorate. Not a lot, and without all the rights of a salaried worker, but still. The difference between debt and a small net gain (even though you may still require assistance from your family) is astounding for your mental health. Edit: just an addendum, and it might be particular to my country. Some of these private institutions are very renowned, specially regarding post-graduate courses. However, the public universities are typically considered to be the 'best' ones. As far as I can tell, the entrance exams serve as a filter of o high-quality candidates (or at least that's the consensus among professors). Another factor is that private universities have a higher share of undergraduate students that work concurrently, which impacts their performance. In any case, the relation cost (to the individual)-quality is not observable.