A lot of it has to do with the stigma that being a non-freshman carries in some competitive recruitments. Chapters are wary of taking upperclassmen because that's one less freshman they can pledge. Adding a upperclassman quota means they can pledge that sophomore without worrying about her taking a freshman spot in regular quota.
At some schools, upperclassman quota means sophs and juniors. There are some schools who do a junior quota which involves juniors only.
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