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Abstract The tiered structure of higher education institutions plays a crucial role in shaping students’ college choices, influencing their academic and career trajectories. Drawing on Signaling Theory and Identity Economics framework, this mixed-methods study examines the factors influencing Vietnamese high school students’ college-tier choices. An integrated mixed-methods analysis of 3583 student survey responses and interviews with 40 students and 23 teachers from 12 high schools in Hanoi uncovers how institutional signaling, socioeconomic factors, and identity-driven motivations shape students’ tier-based college decisions. The findings reveal the complex interplay of academic performance, socioeconomic background, and identity-driven motivations in shaping students’ tier-based college choices. Students interpret university selectivity and prestige as key indicators of future career success and social mobility, with high-performing students gravitating toward top-tier institutions, while others make strategic decisions based on regional disparities, family expectations, and career aspirations. Furthermore, while standardized test scores play a decisive role in admissions, non-academic factors such as familial influence, peer networks, and regional access to educational resources significantly mediate college-tier selection. These findings have important implications for policymakers, educators, and higher education institutions seeking to create equitable pathways and policies that support diverse student needs and aspirations in evolving educational landscapes.