I feel very sorry for every soul that would be studying abroad right now are paid their upcoming semester.

Adding to the point of education as a commodity - it isn't, and we should emphasize that. What makes those institutions so precious are their famous name tags and the brand value which is given momentum by celebrity scientists (visiting the class of Michael Porter for instance) and the other aspect is the profile of the network which goes both ways. The best people attract the best and add to the value of an expensive piece of paper (diploma). The same goes with excellence and earning monetary funds as an institution - it is about competition, it is never about education itself, truly a vicious cycle.

If it comes to the core, the knowledge itself, most of it is not worth the cash (except for perhaps the research itself but that is also subject to discussion).

The system itself (very much in the like of traditional businesses) is flawed - it really comes down to the people and institutions who make the donations and provide funding.