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I think two things determine the tiers. The first is the selectivity of a school based on the % of students accepted and rejected. This is easy to understand. I also think the tiers are set on whether or not a school has a local, regional, national or international reputation. Exeter, Saint Paul's etc. are all internationally known, receive a ton of applications and can be very selective. Figuring out a school's level of reputation is not easy to do or understand.
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