Student distribution among institutions of higher education corresponds more to the socioeconomic status of institutions than to the test-predicted performance levels. Aggregate data shows that the more costly institutions recruit wealthier students with higher test scores. Traditionally black institutions rely far less on test results, preferring to depend overwhelmingly on grades. Non-black institutions tend to judge and counsel black students, as much or more than other students, on the basis of test results. The setting of admission standards in higher education is treated as the private right of institutions, and the exercise of that right essentially corresponds to the characteristics, particularly the socioeconomic status, of the institutions. (Author/BH)