<p>I think this is what happens and has happened at most schools and no one really wants to fess up until caught. If they are running a business, which they are, it simply makes logical sense.</p>
<p><a href=“http://www.gwhatchet.com/2013/10/21/gw-misrepresented-admissions-and-financial-aid-policy-for-years/”>http://www.gwhatchet.com/2013/10/21/gw-misrepresented-admissions-and-financial-aid-policy-for-years/</a></p>
<p>Relevant paragraphs from above article re GW:</p>
<p>"The University admitted publicly for the first time Friday that it puts hundreds of undergraduate applicants on its waitlist each year because they cannot pay GW’s tuition.</p>
<p>Administrators now say the admissions process has always factored in financial need. But that contradicts messaging from the admissions and financial aid offices that, as recently as Saturday, have regularly attested that the University remained need-blind.</p>
<p>Students who meet GW’s admissions standards, but are not among the top applicants, can shift from “admitted” to “waitlisted” if they need more financial support from GW. These decisions affect up to 10 percent of GW’s roughly 22,000 applicants each year, said Laurie Koehler, the newly hired associate provost for enrollment management."</p>