Let me go back to my example of Germany - German youth are very passionate, work very hard, they put in more time and passion into things....and yet can't have nicer living conditions, can't have better social care, better roads, better healthcare, better education, because their country is paying their taxes into foreign coffers for something that their grandparents did. Once again I ask you, how is that fair to those young people who like you said - are very passionate and very hard working, now have to be denied certain things they want and pay for? They are the ones losing out for something they haven't personally done.
It's the same here. Yes, I'm truly sympathetic that a kid can get rejected from college because they are from the "wrong" social group, at absolutely no fault of their own. I truly am. But if society wants to repay its debt for the damages caused then that's one of the ways of doing this.
The other solution, of course, is to create enough places in higher education that no one gets rejected for any reason. But that's a system Americans are unwilling to pay for, so that's not a solution within that context.