The SAT is, by far, the most effective single predictive tool for student success - especially for the "tier 2" schools, like a PSU (more so than for the "elites", the Ivies and what not).
And that has become even more dramatic - has become even MORE strongly the top predictor - in recent years, as grade inflation has gone absolutely crazy in secondary schools.
Are there other useful data points and considerations? Sure. And they also should have a "place at the table".
FWIW: The data at PSU since going "test optional" are proof positive. Clear, significant, and impactful between those who do - and those who don't - submit test scores prior to admission (and, as always, the parameters for those with higher vs lower scores)
Non-elite schools that have dropped the standardized test score from being a PART of the acceptance process (they never have been, and never should be, the only metric) do so for 1 or more of 5 reasons:
1) To maximize applications
2) To allow for admission of more (lower quality) prospective students without having it reflected on their statistics
3) To increase revenue
4) To allow them to "social engineer" their acceptances
5) To make a political/ideological virtue statement
Period. End of f-ing story.
PSU Administration continues to refuse to even consider re-instituting required test score submission - even as a tracking mechanism, if not an acceptance metric (despite their never-ending lullabies about being "data driven"
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They refuse for, probably, all five of the reasons listed above. It's all BS.