Just because money benefits the rich disproportionately, it does not mean this money is not well spent. This is because the students at fancy colleges are not

Just because money benefits the rich disproportionately, it does not mean this money is not well spent. This is because the students at fancy colleges are not only richer, but also smarter, more ambitious, and harder working, on average. Furthermore, donations don't only benefit students, but researchers working at those universities. So while giving to fancy colleges is not necessarily the best use of money, it is not enough to show that the students there are privileged. If the students at those colleges were only there because of their privilege, then the author's point would make more sense.