"Why not." suggests why this can be a very bad attitude trap, you don't value so much what you don't sweat for. If the OP attends MIT he'll sweat more than he would at Z for academics and money, and that will likely make a profound difference in the person he becomes by graduation.
Maybe it will make a difference,
maybe not. But the large debt will certainly have a negative impact on his post grad life. You might also be too worried about money to focus on the academics.
You believe "the large debt will certainly have a negative impact on his post grad life." and you don't see that as a forging a profound different in the person he becomes?
Then I submit it's not very negative, it's a part of normal American life, except it's a true investment not so subject to depreciation like a vehicle which is consumption unless it's a means to the end of earning money, or a house which is also consumption with a lot of assumptions it might turn out to be a worthwhile investment.
The same assumption exists for college degrees. Just because you get one doesn't mean you will make money with it, or even that you are better off than if you hadn't gone.
"Then I submit it's not very negative,"
How do you get that from my comment? Just because something is negative doesn't mean someone will change.
"Why not." suggests why this can be a very bad attitude trap, you don't value so much what you don't sweat for. If the OP attends MIT he'll sweat more than he would at Z for academics and money, and that will likely make a profound difference in the person he becomes by graduation.