<p>For many families considering college (in state or out of state), HYP are actually cheaper than Berkeley or other state schools because of the massive financial aid made available to families below a certain income threshold. In fact, for an "average"-income American or international family with one income earner, HYP are basically free, while a state school is prohibitively expensive. Especially after all the hidden fees.</p>
<p>Of course, for the upper-middle class (where most college applicants come from -- families making over $80-90K or so), a state school can sometimes be a bit cheaper, but often not by as much as you might think.</p>
<p>Furthermore, state schools are often significantly more elitist than top private schools, because students fragment themselves into groups based on income level or town origin. In many cases, students can pay different pricing levels for differing qualities of on-campus housing, for example. At smaller private schools, this is almost always less of an issue. Smaller schools create more diverse student-student interaction, for many reasons, one of them being there is often much more geographical diversity to begin with, e.g., no more than a couple people from any single high school or town, and most students from out of state. At a state school, the 100s of rich kids can band together with their high school buddies on the weekend and drive out to their friends' mansions an hour or two away en masse, leaving behind the rabble on the rest of the campus who don't want to go home to their families' crowded apartments in a poorer part of the state.</p>
<p>Also, many HYP-caliber places pay $11-12+ per hour for on-campus jobs, so students who don't have their parents supporting their every desire can get by a lot better and earn a bit of spending money by sitting at the gym for a few hours checking IDs. If you get $7 an hour at a state school serving dining hall food to the rich kids, it can be pretty depressing.</p>
<p>In my opinion, and this is based on talking with hundreds of alumni of both state institutions and private institutions, if any places are overrated, they are the so-called "flagship" state schools -- not places like Harvard, Yale, MIT or Dartmouth. I'm not saying that all private institutions are better (quite the opposite is true, in fact), just that the "best of the best" (top 10 or 20 or so, i.e., HYP and the top LACs) have overwhelming resources that allow for a better overall campus experience.</p>