I don't believe undergraduate chapters should be done away with because as many said before they are the lifeblood of the organization. Undergraduate chapters when they represent well are the best spokespeople for our orgs. However there are so many "issues" between both grad and undergrad chapters that stem largly because of inabilities to relate to each other. Even us younger members of graduate chapters have a hard time relating to the older members. The school of thought is different, everyone has come from different times and different ways of handling things and often times our opinions may clash. As an undergraduate advisor, I came to see that there is such bad blood between the undergrad and grad chapters. The undergrads don't feel respected, they don't feel trusted, and the grads often times don't feel that the undergrads conduct themselves in a way where they should be trusted. This MIP thing has great cause to broadening the gap amongst undergrad and chapter members. Personally I don't think our orgs would have lasted very long if they only extended grad membership and not undergrad, but I also think our orgs won't last much longer if we keep having to deal with lawsuits and people getting seriously injured and killed during their pursuit to become members.
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