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The scandal that’s rocking the higher education system is really about questioning the legitimacy of “elites” in this country, Washington Free Beacon editor-in-chief Matthew Continetti argued Tuesday.

Earlier in the day, law enforcement officials announced that 50 individuals had been indicted as part of a nationwide scheme involving wealthy parents committing fraud in order to get their children into prestigious universities. Among those indicted were TV actresses Felicity Huffman and Lori Loughlin.

During Tuesday's "Special Report" All-Star panel, Continetti -- along with Federalist senior editor Mollie Hemingway and Reuters White House correspondent Jeff Mason -- weighed in on the massive controversy.

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Continetti began by insisting that “elites” of all stripes “bend the rules in their favor” by using their money and connections.

“This scandal just shows another sphere of American life where elites have betrayed our country’s institutions and indeed, our country’s people,” Continetti said.

“This scandal just shows another sphere of American life where elites have betrayed our country’s institutions and indeed, our country’s people.”

— Matthew Continetti, Washington Free Beacon editor-in-chief

He explained that the suspects may have gone to great lengths such as bribery to get their kids enrolled in top universities because a degree from such institutions can earn graduates “exponentially” higher salaries.

“We need to think about how our economy is structured so that this wage premium isn’t so slanted toward college degree holders,” Continetti added.

Hemingway called the allegations “stunning,” but predicted that the scandal “will lead to major changes” in how college admissions are operated similarly to how other industries have been reformed in recent years.

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Meanwhile, Mason called the controversy “very sad” because of the “lesson” the parents were allegedly teaching to their children.

“They’re teaching their children that it’s OK to lie and that it’s OK to cheat. And it’s incredibly sad,” Mason told the panel.