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Also, rejection by the school in the early round suggests that the applicant is nowhere close to the "borderline zone" that could get a deferral.
I used to agree with this but no longer. Increasingly, I hear of Early round rejections that I wouldn't have ever predicted. A growing number of students who seem easily strong enough to be accepted EA or ED (or at least strong enough to be deferred and reconsidered) are being denied outright in December instead.
Another option, but not one I'd recommend if the student has other acceptances, is to take a gap year and reapply.