I'll give you an example of how my university works.
700 or so people in one year ( Medicine ) are split in series of around 80-90, 8 of them in total.
Each series has its own teachers for the most part except for some fields like Cell Biology, where everyone has the same teachers.
For instance, in Anatomy, there are around 7 professors ( one of them has 2 series ). At the exam the professor gives you 3 subjects and then grades you. The scholarships are given at the end of the year, as well as the free tuition spots ( first 400 or so ), based on your average grade. Now the issue is that we, all 700, are competing with each other, despite having different teachers with different expectations.
In Anatomy, for instance, there's my teacher that is 100% fair. You draw 3 subjects, you are stuck with them. You can't pick another if you don't know one and he's regarded as being fair. That's cool. Everyone has his chance ( it's a lottery really, you can draw 3 subjects that are 1 page long together in total or 9 pages long if you're unlucky ). It's a game of luck where everyone has the same odds of a jackpot.
Now the problem is when you move onto other series, where literally 3 people out of 90 fail ( in my series around half fails ) because the professor spends 20 minutes with the student asking him basic shit until he can get a passing grade. Similarly in other series professors give higher grades way easier and even allow you to repick a subject if you don't know it.
When you factor in that I'm competing with people that get higher grades much easier and have a lower chance of failing due to more kind professors, why would it be considered morally wrong if I cheat? It's unfair for me to compete with them when my teacher is way more harsh and has the tendency of failing people much more often.
We're talking about a couple thousand dollars ( it's quite a lot here ).
Yes, I know. Cheating is wrong. Go study noob. But it's simply unfair that we're all competing with each other when the conditions are different.