Should parents encourage students to apply to colleges (locations) that suit the parents' values?

In your case, what about a college near you that has students coming from all over. For example, Clemson and Univ of South Carolina are getting many students from the mid Atlantic and Northeast. Surely, there will be students who are liberal and less religious at these schools. It’s a matter of finding them. I would avoid smallish schools that aren’t geographically diverse. Also, schools in NC such as Elon get students from the Northeast so there’s more of a mix of politics. Then again there are southerners who are atheist Democrats and Northerners who are Evangelical Republicans. The goal is to find a school with a wide mix of people.

In our case our daughter is going to a school where I believe many of the students are conservative and religious. We have had talks about how she will meet people with different beliefs, but that doesn’t mean they aren’t great people. It’s going to be an adjustment, and she will probably have to keep her views to herself initially until she gets the lay of the land.