Completely anecdotally, but I had two Asian colleagues from poor households. One got a full ride to Harvard and the other to MIT. Whereas, the smartest person I've ever personally known was accepted to Harvard but not given any financial aid. He was a white male with a drug-addicted mom raised by his grandma in the slums.
It is definitely not an advantage, since the janitor’s kid is unable to pay tuition and unlikely to donate money to the school. These schools are primarily focused on maintaining their huge endowments and their over-hyped reputations.
In a rules based system, you get in or don't based on your qualifications and prerequisites. You can predict how the system will act in restricting you. It is fairer.
In a system where everyone must be judged, it leads to exercises in capriciousness, which is what we're seeing now. "We have too many that look like you, we need a different assortment of appearances." That's arbitrary. "Your story made me sadder than his story, you get in." That's an awful way to run a system.
That's how you get aristocracy with arbitrary power. It's what every monarch of the old systems lorded over the peasants. We're just recreating it in technicolor in all of our non-governmental systems, and it just seems so utterly foolish. The claims for why we're doing it seem noble, but they always seem that way. What this arbitrary mechanism always achieves is the opposite of its stated intent.
This has been my argument against “post modernism” and “my truth” nonsense. You can’t have a legal or social system that is selectively applied because of a story or your feelings.