I think this fix is a compromise between two parties who want different things. Some people want no immigrants in the schools because it takes up a small amount of spots and the other side wants them in the schools as long as they don't take spots that would have gone to qualified citizens.
You say it is an insignificant amount of students, but if someone is the parent of one of the 501 American citizens who would have gotten that spot at the taxpayer funded university that went to an illegal immigrant, it's a significant issue for that person.
State universities are a very emotional issue for a lot of people, especially parents. I am probably going to get $100,000 scholarship offer ( OOS tuition waiver plus $10,000 a year) from The University of South Carolina.
Is that fair for a South Carolina citizen to not be able to afford to go to their state university while they're funding my education, even though I have never spent a day of my life in the state?
According to the South Carolina legislature, it is fair because I add a strong dynamic to the campus community and may in the future contribute to the state of South Carolina. Here in Texas there is EXTREMELY limited (as in none) merit scholarship for out of state students, that's because the citizens fight hard enough against it.
I would imagine that there are a lot of students who were denied from either UGA or Georgia Tech who believe illegal immigrants hurt their chances. I think their outrage makes it more than worthy for their state legislators that they elect to look into the issue and decide what is best for the state, just as South Carolina and Texas do.