I've heard numerous fraternity guys use the term and to tell you the truth, I doubt that many people really care whether you abbreviate the word fraternity or not.
I think if you are offended by an abbreviated word, that you're probably a bit anal and need more things to fill out your day.
In the case of the word 'frat' representing negative stereotypes when used, as long as you know and believe something, who cares what other people say? Let their ignorance and your tolerance show.
-Matt
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