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For what it's worth, while I was visiting Stanford, I spoke with an admissions officer and asked her about how much Stanford pays attention to geography. She explicitly stated, they do not try to fill "quotas" or make sure to get students from every state; their goal is to admit qualified students, and being from one area won't advantage or disadvantage you. The fact that Stanford ends up having wide geographic representation happens naturally.
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I don't think that person was being completely truthful. Technically they are telling the truth but you have to think more analytically. Of course there are no "quotas" for "quotas" are unconstitutional. Also, I have already said it's not based state-by-state but by regions. Anyways, just think about it. Stanford could easily fill it's entire class with highly qualified kids from California, but they don't. If there are two applicants with identical applications, who do you think will get in, the kid from Iowa or the kid from Boston? Geography is considered by the holistic admissions policy because geography and opportunity are related.</p>