I've done scholarships for a private college, and they certainly do look at both grades AND difficulty of classes. That's what makes it different than a public school. If you take all easy classes and get A's and B's you'll most likely get in to a public college easier than private, they tend to look at total work ethic, ***NO NO NO***ion, and grades.
I would agree with the statement about private schools. our son has been accepted to a few private schools already that have tougher requirements then most of the state schools based on his test scores, and dificulty of classes. However if you are looking at state schools, they (well, Ball State and IU) are just looking at class rank, and GPA.
That seems to be exactly the case. I got better scholarships going to a private college (with a 12.215 GPA and ranked 3rd) than state schools and their answer was that it would be significantly better if I was 1 or 2. I took harder classes and did well, but got less money than our 1 or 2 at a state school, both of which struggled to get in to private schools but easily got in with large scholarships to state schools.
I recommend my students to take the harder classes, they prepare you for college better, and go where you like. In the long run a good work ethic and preparation will serve them best in the long run (life).
SAT scores, high GPA, class rigor, class rank, it all plays a part. You don't have to be ranked #1 or #2 in your class to get scholarships to state schools. We're finding that if your kid has a very high gpa coupled with a very high SAT and they're at least in the top 10% of their class (if it's a bigh school), this opens up scholarships to the state schools.