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SHOULD she lose the crown? No. But these competitions are set up by private organizations who can make whatever rules they like. That said, the Miss America people are dealing with the fact that the number one person anyone can think of, associated with that title, is the one they let go for "cause". Dealing with the fact that these contests are severely out-of-touch with the general public, these places might do themselves a service by admitting someone who is using the scholarship (assuming they still give those out) as an opportunity to further herself. If nothing else, think of the extra publicity that organization would receive, for being a support to the community.