Are you asking pre-entering college or after say the first year of college?
What’s interesting is that everyone starts off on relatively the same foot, but then the separation happens based on abilities, previous coursework etc. But the first year can be the year to prove oneself. Just because you were a math super star in HS doesn’t mean you will be one in college.
Also, where you stand academically in the class can affect scholarships, getting into certain classes/programs/majors, opportunities, research etc.