The high cost of Ivy League admissions consulting is justified: "It's a worthwhile investment."

• In order to gain an advantage in the competitive college admissions process, some families are willing to spend almost unlimited amounts on private consultants for their children.
• At Command Education in New York, families pay $120,000 annually for counseling services through high school, not including SAT or ACT test prep. By graduation, they have spent approximately $500,000.

Near all-time lows, acceptance rates at the nation's top schools, including many in the Ivy League, remain high.

The stress of college admissions is increasing, according to Thomas Howell, founder of Forum Education, a New-York based tutoring company.

To ensure their child attends a top school, some families are willing to spend unlimited amounts on tutors, college counselors, and test preparation.

'Top 20% or bust'

As the cost of private colleges continues to rise, some students are choosing public schools or alternative education options. However, those who are willing to pay for a four-year private college believe it is worth the investment.

"According to Howell, the value proposition of higher education is becoming increasingly polarized, with it being either a prestigious institution or a genuine source of value."

He stated that for this group of college applicants, it's "either top 20% or nothing."

According to a report by the Common Application, universities in the "Ivy Plus" category are experiencing a record-breaking increase in applications.

The "Ivy Plus" group consists of the eight private colleges that make up the Ivy League, including Brown, Columbia, Cornell, Dartmouth, Harvard, University of Pennsylvania, Princeton, and Yale, as well as the University of Chicago, Duke, Massachusetts Institute of Technology, and Stanford.

Many families seek external assistance to boost their chances of admission to prestigious schools.

In 2025, more colleges are expected to shut down. The top 10 highest-paying college majors have been identified. Some colleges now charge nearly $100,000 per year for tuition.

According to Hafeez Lakhani, founder and president of Lakhani Coaching in New York, the general agreement is that college is only worth attending if it results in a significant change in one's life.

"Despite the changes, there are still individuals with significant resources who are willing to invest more than $100,000, which is approximately 20% of our clients," Lakhani stated. "This could be the largest amount they've spent on anything other than a car."

According to Lakhani, some of her clients have spent as much as $800,000 on counseling, while the average amount spent is $58,000.

At that price point, students receive a "Navy Seal-level" tutor in almost every class, according to Lakhani.

Despite being the most expensive coach at his company, with a rate of $1,600 per hour, Lakhani is still frequently chosen by families over less senior coaches who charge around $290 an hour, he stated.

He added that even if he charged more, the dynamic would not likely change.

Frequently, parents assert that "it's worth the investment."

At Command Education in New York, students receive weekly counseling sessions starting in eighth or ninth grade. The annual cost for families is $120,000, not including SAT or ACT test prep. By graduation, they have spent approximately $500,000.

Christopher Rim, the founder and CEO of the company, stated that they limit their clientele to 200 students worldwide, with a first-come, first-served basis. However, they may turn students away if they believe they cannot deliver the desired outcome.

He emphasized that outcomes are the most crucial at the conclusion of the day.

'This is not a neighborhood tutor'

Since the pandemic, Howell's business, Forum Education, which he started ten years ago in New York City, has ballooned.

"After Covid, the normal learning environment collapsed, there was more time in the day for tutoring, and a greater need for it," Howell stated.

He stated that as demand increases, rates are also rising at a rate of approximately 30% per year.

Academic tutors now charge up to $1,250 an hour for their services, excluding college counseling.

According to Howell's account, the majority of students come from private schools in New York City with household incomes exceeding $1,500,000. These families typically spend around $38,000 on tutoring annually, in addition to college consultants.

"These academic tutors are not part-time or side gigs, but full-time professionals who earn well into the six-figures," Howell stated. He added that two of his staff members even earned over $1,000,000 last year.

The market research firm IBISWorld reports that the business of college counseling has been growing steadily, with total revenue reaching $3 billion in 2024. This growth is driven in part by increasing concerns about the return on investment of college education, which has made these specialists a valuable investment.

'An imperfect meritocracy'

High schools often provide tutors and counselors without any cost to students.

It can be challenging to receive individualized guidance on college planning when there are a large number of students in a class.

The number of counselors available to students has been decreasing for years, with the current national student-to-counselor ratio being 405 to 1, as stated by the National Association for College Admission Counseling.

Those that can afford outside help do have an advantage.

According to the National Bureau of Economic Research, children from families in the top 1% are more likely to attend an "Ivy Plus" college than those from middle-class families with comparable SAT or ACT scores.

"Higher education is an imperfect meritocracy," Lakhani said.

The wealthiest students from the country's top private schools are mainly competing with each other as schools strive to create a more diverse student body.

Lakhani stated that when applying from an affluent family, the competition comes from individuals in a similar socioeconomic class.

Even though many are fortunate enough to receive private help, most are reluctant to admit it.

Rim stated that every parent desires for their child to do it independently.

Is an Ivy League degree worth it?

An investigation by a non-partisan, non-profit research group at Harvard University examined the predicted future earnings of students who eventually enrolled at Ivy League schools versus those who attended public universities.

The economists from Harvard and Brown universities discovered that the impact of attending an Ivy League college on earnings is "statistically insignificant."

However, there are other advantages beyond income.

According to Opportunity Insights, attending a college in the "Ivy-plus" category nearly doubles the chances of attending an elite graduate school and triples the chances of working at a prestigious firm.

A report by Opportunity Insights revealed that graduates from a small group of highly selective private colleges disproportionately hold leadership positions.

Rewritten: By increasing students' chances of ultimately reaching the top 1% of the earnings distribution by 60%, the alternative version of the input sentence suggests that students have a higher likelihood of achieving higher salaries.

Researchers stated that private colleges, with their highly selective admissions, act as gateways to the upper echelons of society.

"These colleges perpetuate privilege by admitting students from high-income families at higher rates than lower-income families with similar academic qualifications," they stated.