It’s great that a rebbi raised money so that one of his students could go to camp. Maybe there were reasons why the rebbe felt that this student needed it.
BUT – The rebbi should have made sure to do it in such a way that NO ONE – not even the student himself – should have realized that the money was raised by the rebbi. Otherwise I’m sure other students would have felt bad about it. Especially the other kids who would have loved to go to camp but couldn’t.