I've never heard it applied to locals before, Sisterplum, but I can see why if that's how it's used up there you wouldn't like it!
On my campus GDI was generally applied only to those few students who were very vocally anti-Greek - those who wouldn't go into a fraternity house if they were meeting a study partner who was a member. Not to someone who just was not a member.
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Alpha Xi Delta
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