I think you are right about it tainting the school. While I still love the school for many reasons, I don't know if I will ever feel the same about it again. It is still so hard for me to believe.
I am an alumni volunteer for the PSU admissions department. I was surprised to learn that the number of applications are up this week. I thought this would bring the number down. It might be that the students who had already made their decision to apply before the scandal are still applying because they've made up their minds. I wonder, however, if this scandal will bring down the number of people who apply later on in the future. It may be that students who are still deciding where to apply will be less likely to choose PSU.