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No you don't have to name Baylor as your first choice school for NMS in order to be eligible for the Faculty Scholarship. I have a Faculty Scholarship and I wasn't even a NMF.
What that just means is that if you did name Baylor as your first choice school, then as a NMF you'll get tuition paid for already, and then if you get a Faculty Scholarship on top of that, they'll also pay for all your room, board, and general fees instead of just covering tuition since you'll already be getting tuition.
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