That misses the point. Jaguars are better (and more fun) than a Ford Focus. The question is whether the branded school is worth the delta, and the answer is tha

That misses the point. Jaguars are better (and more fun) than a Ford Focus. The question is whether the branded school is worth the delta, and the answer is that in most undergrad programs, it isn't. Let's take an example: Steve wants to go to school for Computer Science. He'd really like to go to Duke, but he also gets in at UC Irvine in California. If he's really good, he'll get good grades at UCI, and he can go to Duke for a Masters (maybe on a free ride). If he's only an average student, then he had no business going to Duke because he wouldn't really be able to leverage the high powered degree anyways (a C+ average from Duke isn't opening a ton of doors). Let's change the hypo and make the major French Literature. Now, we know Steve will never be able to repay Duke tuition with that degree, no matter how many influential people he meets or how good his grades are. The upshot: it's not that Duke isn't better than UCI - it clearly is. The point is, is it a good investment. And it rarely is...unless you have the extra money and can do it without the debt and without limiting your future options. That's what makes it a luxury item.