So there can be something sometimes called a Dean’s List where applicants on that list can get an advantage in admissions at the relevant college. It won’t usually get in someone not considered academically qualified, but it could potentially help an academically qualified person beat the still large odds against admission at these colleges. And a VERY large donor (these days people say it would typically take being a $10M+ donor at Ivies or equivalent) might be able to get their own child or grandchild onto such a list.
Similarly, faculty and certain staff can get their children or perhaps grandchildren onto a similar list (it is basically an informal part of their compensation package).
What does not sound right to me about this situation is that this person is not your own parent or grandparent. And to my knowledge, this courtesy is not extended to children of friends, because of course that would end up being far too many people.