But in fact, every student pays a different amount. The very high sticker price of tuition exists to let the schools charge each student a customized price by

But in fact, every student pays a different amount. The very high sticker price of tuition exists to let the schools charge each student a customized price by applying discounts (e.g. scholarships and aid) as they choose. They can compete for students this way. The most desirable students (by whatever criteria the school has chosen) are offered more discounts. This system operates at every level. A student of medium-high desirability, say a well-off white kid with good-but-not-great grades, might be offered discounts from a less well known regional school, but not from a nationally recognized school, even if her family can afford to pay full fare anywhere.