It's totally an issue. If you're a transfer student, you'll find that the few universities that go on about how proud they are to be need-blind and offer a great education to everyone!...now all consider need in admissions, or don't offer to meet your need even if you do get in.

Considering many low-income students start out at a community college, taking even one credit at one effectively locks you out from virtually all prestigious universities. It used to be the case that you COULD go from community college to a fancy private, but it's all but impossible these days.

Combine this with what you mentioned in the second part of your comment, and low-income kids are screwed both pre and post high school. It also screws over kids of all income ranges with highly dysfunctional/abusive families (who won't help with college, didn't support your pre-college academics/extracurriculars, won't sign your FAFSA, etc), since the only thing you can afford is a community college in those cases as well.