The question is, should a university
a. maximize for absolute value of success of its alums (for some definition of "success"), or
b. maximize for the value it adds to the student (and hence the society) by considering the difference in the said measure as a result of the student joining the univ.
(a) is easier to measure and optimize for. But it will select for students who will do well in later life - irrespective of what the univ has to offer. The univ's entrance criteria will exhibit this bias. Of course, some biases can be explicitly countered - by having a quota system for those with less privilege. But in each of those subsets, the univ still tries to maximize for absolute success of the individual.
(b) is harder to measure - as it seeks to quantify the portion of individual's success that can be attributed to the univ specifically.
(a) is easier to measure and optimize for. But it will select for students who will do well in later life - irrespective of what the univ has to offer. The univ's entrance criteria will exhibit this bias. Of course, some biases can be explicitly countered - by having a quota system for those with less privilege. But in each of those subsets, the univ still tries to maximize for absolute success of the individual.
(b) is harder to measure - as it seeks to quantify the portion of individual's success that can be attributed to the univ specifically.