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The College Board has studies showing that extra time results in a statistically significant improvement for kids with LDs but no statistically significant increase for those without LDs. I also found a doctoral dissertation with the same findings for the ACT. As such, I don't see any reason not to give people the right to replace timed tests in many subjects.
Disclosure is the next issue raised. That was the subject of a class action lawsuit that ETS/The College Board settled to avoid losing, I think. High end universities review 10-20 kids per slot. Many are qualified and they are just looking for reasons to reject people who all seem really good. The disclosure of extra time could lead to a "Well, she may have done very well in HS but can she really cut it at Seriously Self-Impressed University where we have the best of the best and the competition can be intense." I suspect that, given the data cited above, disclosing confers an unfair disadvantage on kids with LDs.