As long as the student has a definite safety and you can afford the apps, I see nothing wrong with applying to a mix of schools. I was very clear with my D what the budget was and told her the numbers were firm. I allowed her to apply to 19 schools, mostly chasing merit aid. When the envelopes were opened and the COA was higher than the budget, it got tossed. There was one exception and she wanted to appeal but the finaid office was so bad in corresponding with us that it never happened anyways. In the end, she was offered a substantial package from a school I had told her would be a waste of app $ to apply to because the NPC suggested it would be nearly double our budget. You just never know what school might want your student and make themselves a feasible option.