College admissions should be more random. This would both be more just as well as easier on kids.
There is a way to select people that produces no incentives and no intergenerational privilege: randomly! This should consequently be used more.
I don't propose that college admissions be completely at random. I think there are some legitimate reasons for colleges to care about GPA/SAT, and about diversity and equity (though probably the biggest gains for equity would come from reducing the premium for going to college, reducing the cost of college, and other things that have little to do with who goes where.) Further, there's such a thing as good fit - some people are likely to thrive in a small college and others in a big one, or urban vs. rural, and so on.
Here's the proposal:
There's selection by fit here but that part is entirely driven by students. If you want to join the fencing club, join it because you actually enjoy fencing.
The above proposal has incentives that seem to work entirely to incentivize colleges to set high GPA/SAT minima (since that selects for students who are most likely to make money and donate, make the college look impressive, and graduate.) These are also the students who need the least help. Moreover, you increase your signalling value if you are more selective in this way.
This could be fixed by simply giving more funding per student to colleges that set lower minima - which would have the added benefit of funnelling educational resources to students who need more assistance anyway. They'd only get the funding for students who actually graduate, however!
All of these are fragile attempts to compensate for the actual way to handle higher ed:
Of course, even my watered-down proposal runs into a number of difficulties - courts in the US dislike quotas and so does the voting public, and more fundamentally colleges WANT to get the most privileged kids (as long as it can be done in a sufficiently invisible way) so they can get more alumni dollars, &c.