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Dropping two places to number 25, the University rounded off the top tier of the U.S. News & World Report annual college and university ranking list.
The University tied with the University of California-Los Angeles, Tufts University and Carnegie Melon University in this year's university rankings, released this past month.
The slip drops the University into the fourth place position among public universities. Before this year, the University was ranked second only to the University of Virginia.
University spokesperson Julie Peterson said no matter how high the school rates, the University does not take the rankings seriously.
"There are many more factors to a University than its rank," Peterson said, adding that she does not expect the fall in the rankings to affect the University's reputation or applicant pool.
For the past 12 years, U.S. News & World Report has ranked colleges and universities as a "service for thousands of students looking for a university," said Celeste James, director of Media Relations for the magazine.
Among the factors used by the magazine in the ranking process are alumni donation, graduation rate, academics, tuition costs and quality of life. The University ranked 126th in the alumni donation category and 25th for graduation rate.
Although the magazine thrives on being a resource for college-bound teens, some universities are skeptical of the methodology used to create the ranking.
"The U.S. News rankings take a number of measures and assign weightings in order to determine the quality of universities," Provost Nancy Cantor said in a written statement. "Only if you agree that those particular measures capture the quality of an institution, should you accept the rankings without question."
One criticism of the U.S. News system is that much of the ranking is done by college administrators from around the nation.
"Colleges should be ranked by their peers, not an outside institution." said Terry Denbow, vice president for university relations at Michigan State University.
A school's ranking does not necessarily mean that the university or college did not meet its mission, Denbow said.
He added that despite the high regard some people place on rankings, people are realizing that they are not everything.
Also, critics of the rankings claim that the magazine has a bias toward private schools.
"The rankings favor private schools," Peterson said, noting that only four public schools made the list's top 25.
James said some school are hostile because they "are uncomfortable when scrutinized. They think it will hurt their reputation."
James, however, said that other schools use the rankings to promote their school. "We have a love-hate relationship," she said.
Students are encouraged to use other resources when applying to schools, James added.
"Ranking is not the end all, be all," James said.
Mary Hershkowitz, a high school senior at East Lansing High School, said she will not use the rankings to decide to which schools she will apply.
"I take into account many things, such as the people and the type of school." Hershkowitz said.
Four years ago, LSA senior Michelle Carter heavily considered the rankings when applying to schools, she said.
"I think it is important, especially in undergrad, to look at the ranking of a school. It was one of my deciding factors." Carter said.
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