You've said that people don't realize that colleges are making a business decision when they admit a student.
That is one of the things that have changed the most over the past generation of college-going. Institutions want to make sure that when they enroll a class of 500, or 5,000 that they are creating new and diverse communities. Each place in that community, they hope, will be filled by somebody who brings something different. They attach a value to each of those places. In the instances where they are giving financial assistance to somebody, they want to make sure they are getting added value for that place and that financial assistance.