From the Schools perspective its just a business decision. We make more offers than we have places knowing that on average not all offers will be accepted and not all accepted offers go onto to study with them.... Other Schools dont know and if they did know they dont care...... Other schools will say you paid a $5k option premium with ABC to hold their place...... Coming from an investment banking / deal doing background I would rather make offers to students who were willing to pay a $5k place holding option fee to another university.... The world is not a fair place and this is not an emotional decision.... If you an handle the downside of not having an offer from anyone than keep the $5k

From the Schools perspective its just a business decision. They make more offers than they have places for, knowing that on average not all offers will be accepted. Furthermore not all accepted offers will go on to study with the institution.

The philosophy here on the part of the University, is to make offers to students who are willing to pay a $5k reservation fee, so that there is greater certainty that the students "accepted" will enroll. If the student doesn't enroll, collateral has been paid for the unfilled position. 

Other Schools dont know if an applicant has made such a downpayment. Nor would they care. As far as they are concerned, the applicant has paid a $5k optional premium with ABC to hold their place. 

If you can handle the downside of perhaps losing existing offers, don't pay the reservation. However it never hurts to reach out to the college to see if they are willing to cooperate with your needs.