At public schools, you are most likely to be rubbing elbows with some of your old high school friends and new ones from nearby cities. The bigger and more prestigious the public university, the more likely, you will run into peers that are from all corners of your state and neighboring states. The best public universities will also accept students from coast to coast, i.e. UCLA, UC Berkeley, etc. This concept applies to private colleges as well but private colleges attract more diverse demographics, unless it is a religious or single-gender college.
Many private colleges have an intricate network of alumni members, another advantage over public schools. This opens up doors for private job offers and students are in an exclusive atmosphere. Students may feel that this exclusivity puts them in the leagues of the elite. Take the Ivy Leagues for example.
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