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One reason this might be the case is that some of the funding sources specifically require that only domestic students be accepted. Another thing, many schools require their PhD-aspitants to do TA. Since int'l students may have a unitelligible accent, many college students don't like them as TA. So they may like to recruit domestic students.
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When the going gets tough, the tough gets going.---Mr. Know-all CTG1983
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