From Wiki:

Long a disparaging term in Mexico, the term Chicano gradually transformed from a class-based term of derision to one of ethnic pride and general usage within Mexican-American communities beginning with the rise of the Chicano movement in the 1960s. In their "Latinas in the United States: A Historical Encyclopedia," Vicki Ruíz and Virginia Sánchez report that demographic differences in the adoption of the term existed; because of the prior vulgar connotations, it was more likely to be used by males than females, and as well, less likely to be used among those in a higher socioeconomic status. Usage was also generational, with the more assimilated third-generation members (again, more likely male) likely to adopt the usage. This group was also younger, of more radical persuasion, and less connected to a Mexican cultural heritage.[8][9]

In his essay "Chicanismo" in The Oxford Encyclopedia of Mesoamerican Cultures (2002), Jose Cuellar dates the transition from derisive to positive to the late 1950s, with a usage by young Mexican-American high school students.[10]

Outside of Mexican American communities, the term might assume a negative meaning if it is used in a manner that embodies the prejudices and bigotries long directed at Mexican and Mexican-American people in the United States. For example, in one case, a prominent Chicana feminist writer and poet has indicated the following subjective meaning through her creative work.

    * Ana Castillo: "[a] marginalized, brown woman who is treated as a foreigner and is expected to do menial labor and ask nothing of the society in which she lives."[11]

Ana Castillo has referred to herself as a Chicana, and her literary work reflects that she primarily considers the term to be a positive one of self-determination and political solidarity.[12][13][14][15][16]

The Mexican archeologist and anthropologist Manuel Gamio reported in 1930 that the term chicamo (with an "m") was used as a derogatory term used by Hispanic Texans for recently arrived Mexican immigrants displaced during the Mexican revolution in the beginning of the early 20th century.[17] At this time, the term Chicano began to reference those who resisted total assimilation, while the term Pochos referred (often pejoratively) to those who strongly advocated assimilation.[18]

In Mexico, which by American standards would be considered classist or racist, the term is associated with a Mexican-American person of low importance class and poor morals.[19][20][21] The term Chicano is widely known and used in Mexico.

Then again, I distinctly recall reading a note by an admission's officer on an application stating "this person is from Wyoming, we don't have ANYone from Wyoming".  Needless to say, that student (white), would also have a much easier time getting into that college than say, someone from New York.

Is it fair?  Maybe not.  But what is "fair" anyway?  There are any number of arbitrary things that can be the tipping point for a college.  Race is one of them, so is location, and there are many others.