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The good side of that is that virtually every non-hooked kid from the Northeast that does eventually matriculate will find the academics much less challenging than their peers. I go to a pretty strong NJ magnet/public school and the kids who've gone to Yale in past years as well as my friends from other high-performing NJ schools have all felt that they've had a sort of "head start".
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I suspect that this is becoming progressively less true, as magnet programs, IB, and AP penetrate more parts of the U.S. There are very challenging high schools in many parts of the country now.