The discussion centers on the potential consequences of a student's dishonesty in their application to the University of Waterloo for Mechanical Engineering. The student in question fabricated extracurricular activities on the Admission Information Form (AIF), raising concerns about whether this could lead to rejection or future repercussions. Participants note that while many colleges may not verify these claims unless a student is under consideration for a scholarship, dishonesty can reflect poorly on a candidate's character. There is a consensus that if caught, the student could face rejection due to the lack of integrity demonstrated. Additionally, anecdotal evidence suggests that good grades might overshadow the absence of extracurricular activities, but the overall sentiment is that honesty is crucial, and the risks of lying outweigh any potential benefits.