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I have no problem with students admitted to single-gender colleges transitioning while there and graduating from those institutions.
I don't believe that it will in any way harm the reputation or exclusivity of the institution. And as a higher-ed fundraising professional, I don't believe that donors/gifts are significantly impacted by allowing transgendered/gender queer students to matriculate and graduate.
My experience is that other students on campus - don't care either.
I live near two of the Seven Sister Schools; I have worked at one of them.
This debate has been ongoing for years in this area and I'm quite proud that despite the controversy and the media-frenzy that has been stirred up in the past - college leadership (Presidents and Trustees) are making the right decision (in my opinion) and supporting those students.
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