Rocky:
I do not reside in Lakewood, and have no reason to challenge you. I will report that a question was asked of the Roshei Yeshivos at Torah Umesorah some years ago regarding a yeshiva expelling a talmid whose parents were not paying tuition. Rav Shmuel Kaminetzky shlit”a responded by sayiong that this was unquestionably ossur. He stated that he is asked this question often, and has never approved this. He did say there was one exception, and noted that this happened only once. A family had purchased a new luxury car that year, went away to E”Y for Pesach with the entire family costing a fortune, and still claimed hardship for tuition. Here, the Rosh Hayeshiva said they could refuse to accept the talmid for the following year, but not to expel. Again, I do not live in Lakewood. My report is something that occurred quite some years ago. The magnitude of living beyond one’s means is not something I can address factually. It is wholly possible that this has gotten worse over the years.