I was surprised (and initially impressed) that the Duke administration allowed students to trade assignments amongst themselves. But I'm not sure I understand why that trade becomes a "disgraceful" problem when money is brought into the trade; as the author of the post pointed out, both groups benefited and obtained housing for less than they valued. And furthermore, no party was hurt in any way (the neighbors of the BSSG are probably grateful as well for the swap with the fraternity).
I think college administrations forget that even though we are students, we are still technically adults and should be able to make mature decisions about where we choose to live. It is important to note that the Duke student groups had the right to turn down the money offers from other organizations; they did not have that right to refuse the assignment from the lottery. I also believe the administration would find LESS student complaints about neighbors if students have more flexibility of where they live and can share spaces with other groups that have similar living habits.
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