What is the difference between a level 1 and level 3 college?

Answer 1

As a guy who has a diploma from a Tier 1 college (USN&WR) let me tell you that after your first job it means nothing.

With the notable exception of a grad school, no one will ever ask you about where you went or what your grades were once you have that first job.

Arguably, the better colleges will help you find a better first job. However, once you're in the real world, a fancy diploma won't help you perform.

Arguably, the fancy name will get you into a better grad school. If you're going on to grad school (medicine, law, etc) then this might be a consideration.

Locally, we have a community college who counts an astronaut as one of its grads, along with dozens of doctors, dentists, etc.

QED.

Answer 2

It probably depends on where you live, but in the US, it would be the difference between an Ivy league school, such as Harvard or Yale, and state schools.

What's the real difference? Money and prestige. You'll probably get a similar education at USC as you would at Cal State, but you're more likely to get a job with USC on your diploma.