Using mixed-methods, the authors examine two questions: Who in Peru attends private higher-educational institutions and what are the perceived advantages/disadvantages? Young Lives’ longitudinal quantitative data for Peru, suggests higher-educational segmentation starts early in life, whereby young people from wealthier households attended private institutions and those from poorer households attended public ones. Interviews with students, teachers and staff provide insights on perceived strengths and drawbacks of higher-educational marketisation and highlight the importance of family background in higher-educational choices, governmental regulation, and close monitoring of higher-educational quality. Read the article at Wiley Online Library.