Hello
cwxx1010, I'm someone who's been in the hypothetical situation that you've posed. I've done a quick pros-cons list for you, and then feel free to shoot me a DM for a more detailed chat about what my thought process was.
Pros:
1. As a deferred applicant, you have already secured a decent fallback option, unlike most conventional applicants, and you can approach the new set of applications with a less-stressed mindset. For me, this presented the opportunity to really 'be myself' (I know, cliche, yuck) and I was able to put together the most 'authentically me' (yuck again) application for my dream school.
2. If you do it right, you get into your dream school.
3. You could also reapply to peer schools to your current admit or a couple of lower-ranked-but-great-fit-for-you programs to see if you secure an admit with more scholarship. If successful, you'd reduce your debt coming out of business school, and that could have a huge influence on the choices you could make during school and your MBA experience.
Cons
1. Elephant in the room - going through the brutal process of b-school applications all over again! Trust me, it will be more difficult than the first time because there will be moments when you'll question your sanity for going through this process a second time.
2. Being a reapplicant is not the best place to be since the burden of proof for "what has changed since the last time you applied" is entirely on you. My advice: evaluate your profile from three aspects - professional, academic, community/leadership and you should have a solid improvement/update in ideally all three or at least two of these (If you decide you want to reapply, a big chunk of your strategy should be to work on this point from now until you submit the application.)
3. You'll spend more money on applications/GMAT retakes/admissions consulting, without any guarantee of success.
4. You'll also spend more time without any guarantee of success, time that you could instead spend trying a new job, building a stronger network at the school where you're admitted, getting a leg up on the coursework, being with your family, working on a startup idea, you name it. (Be very sure that the dream school will present distinctly better opportunities both during and after school that couldn't come from a combination of these activities and your current admit, or that the dream school is a significantly better fit for you.)
I have intentionally written 3 pros and 4 cons because I want to make it clear that not what many people would recommend this being a rational endeavor. For me, it was my gut that told me I wouldn't rest easy until I shot all my shots. Even then, I went in with eyes open and realistic expectations, knowing that there's a slim chance of success.
cwxx1010
wondered if anyone had any experience with this hypothetical situation... say I got granted a deferral by a school, but know that I really want to reapply to the other school I got rejected by. Should I take the deferral and reapply to my dream school? What are the pros and cons? Does anyone have any actual experience with this?