I think the NWL is for people who are not chosen to fill the nomination quota. For instance, if you're number 2 in you district that has one slot, the number 1 guy will get that, you're on the NWL.
I read that each year, WP takes at least 150 people from the NWL.
My son was on the NWL last year, he did get in. So, don't think its all negative.
