I don't know if I would consider it gaming the system. Look at it this way, if a kid has a dream school, but they aren't certain that they will be admitted to it, they may decide to put that school lower on their list of their ranked schools and put their safety school (that they would still want to attend if they are not admitted into the dream school) at the top. If they get the scholarship and that school still has "room" in their class of 25, then great, it is awarded there. If they get the scholarship later in the cycle and their "safety" school is already full, then Pensacola would keep going down the list, in rank order, until they get to one of their 5 schools that has a slot available and that is where the scholarship is awarded. If they later find out that they are admitted to the dream school, they can request the scholarship to be transferred there, but there are no guarantees that they will have room and they may go on the "waiting list" for a scholarship to the dream school. Inevitably, a popular school like Notre Dame that is tough to get admitted to, will have kids who have received a scholarship there, and have been admitted, but opt to take an appointment to one of the Service Academies instead, thus opening up one of the schools slots to somebody on the waitlist. Since many of these highly selective schools don't give their regular admissions decisions until the end of March or beginning of April, if somebody lists that Dream school as their first choice and gets the scholarship there early in the cycle, but then finds outs they didn't get admitted to school on April 1st, there could be a high likelihood that their #2, #3 or #4 choices are already filled if they are popular programs with easier admission standards. Then the scrambling really starts. There have been cases when somebody was awarded a scholarship, but all 5 of their schools were already full and then Pensacola tries to find a school for them to be able to use the scholarship at, but they may not always be able to. Definitely not all schools fill their allotted slots of 25-35 scholarships, but the popular ones definitely do. We talked with another very selective school, Rice University, and I think they said they only had 6 scholarships last year, mainly because most candidates can't get into the school. I would imagine it is the same with Yale, UC-Berkeley, Harvard, Vanderbilt, MIT, Penn, etc. In our case, DD absolutely wanted Notre Dame as her 1st choice and, luckily was admitted there Early Action, so it worked out for her. But knowing what I know now, I probably would have encouraged her to move her #2 choice (one with rolling admissions) up to the #1 slot, if we had to do it all over again. IMO, though, we'd only use this strategy if our daughter's top choice was one of the most selective schools. I would encourage candidates to speak with the Recruiting Officers at all of the schools they are interested in and find out how quickly they fill up, are they already filled up this year, and the likelihood of getting a spot off the waitlist. If you haven't been selected for a scholarship yet, you can use that information to possibly rearrange your school choices by emailing the folks at Pensacola. If you have been denied admittance to one of the schools on your list or didn't apply to it, definitely take that school of your school list. You can even consider applying to schools that still have applications open, to replace on your list.