When a student is graduated, the Next Grade becomes 99 and the Next School becomes Graduated Students. PS recommends we transfer students to this school from BHS and BTC.
Summary
The Graduated Students school is a logical school for storing Students table records for students that have graduated from the highest grade level on the server.
The Graduated Students school (School Number 999999) and the District Office (School Number 0) are both special purpose "Logical" schools present by default when PowerSchool is installed.
How/Why Students Go To This School
When the EOY process is run, students are moved from their current grade to their next grade/school. Students that have reached the highest grade/school on the server are moved to the Graduated Students school.

This leaves their student data intact, flags that they have graduated ( As opposed to being Active, or Transferred Out), makes their record inactive (excluding them from counting toward the active student total), and consolidates them (In the case of a server with multiple highest level schools, all graduated students are located in the same Graduated Students school).
Being in the graduated students school prevents students from being picked up by the EOY process, Reports (Save those designed to look at graduated students), Statistics, and searches.
Changing / Deleting Graduated Students
The Name of the Graduated Students school can be changed is desired. It is recommended that a Data Pump Export be performed, and the resulting file backed up before attempting this.
The Number of the Graduated Students school should not be changed from their defaults. Doing so can result in unexpected behavior in functions which are hard coded to look for those Name/Number values ( For example: The End-of-Year process )
The Graduated Students school should not be deleted.