This happens in my developing home country too. Lower class kids don't even bother studying because they have no hope of ever getting into a university. Middle class and upper middle class parents send their kids all have tutors and send their kids to private schools so they get all the university spots, universities cost next to nothing. Getting accepted into a university is a big deal there, while anyone that wants to go to a university can go to one in North America.

Alot of these upper middle class kids usually don't even end up staying in the country too, they go abroad for masters and often end up staying there. The country essentially subsidizes education for upper middle class kids who don't even end up paying taxes because they end up moving.