'Rich Dad, Poor Lad': How do Large Language Models Contextualize Socioeconomic Factors in College Admission ?

Large Language Models (LLMs) are increasingly involved in high-stakes domains, yet how they reason about socially sensitive decisions remains underexplored. We present a large-scale audit of LLMs' treatment of socioeconomic status (SES) in college admissions decisions using a novel dual-process framework inspired by cognitive science. Leveraging a synthetic dataset of 30,000 applicant profiles grounded in real-world correlations, we prompt 4 open-source LLMs (Qwen 2, Mistral v0.3, Gemma 2, Llama 3.1) under 2 modes: a fast, decision-only setup (System 1) and a slower, explanation-based setup (System 2). Results from 5 million prompts reveal that LLMs consistently favor low-SES applicants -- even when controlling for academic performance -- and that System 2 amplifies this tendency by explicitly invoking SES as compensatory justification, highlighting both their potential and volatility as decision-makers. We then propose DPAF, a dual-process audit framework to probe LLMs' reasoning behaviors in sensitive applications.