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It is a balancing act. While the selectivity of a high school helps, one must remember that three things are weighed heavily. SAT/ACT scores, class standing and GPA (assuming similar levels of courses are taken). Often, unless a schoool is dangerous or the student is band help her achieve her goals moreso than another school were she is more typical/average (and you can make somewhat of a better story of overcoming obstacles than one that went to a fancy school. Of course, it the education is poor, the student will suffer on the SAT/ACT.
Activities help with an application if the other squares are filled. They also lead to a happier high school experience for most...and those activities often have an impact later in life (as they seem to broaden a person make them competitive and (if sports) teach them healthy habits/fitness. Tough call. Especially since a lot of her performance is based on her attitude (she sorta has a vote). Good luck!
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