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What would parents think if they know how tuition money was being allocated?
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As a parent, I was thrilled with the allocation of tuition money for "bloat". The breadth and depth of student-centric support from the administation was, IMO, one of the school's defining characteristics.
The thing you are missing in your analysis is that, by and large, the extras at a luxury school don't actually cost the customer any more money than at an economy brand school.