not sure -- but can you limit graduate transfers?
I question this and I also question the validity of reports that schools restrict players. Can't remember exact situations, but Howland got put on blast for limiting a guy the past few years. This got quickly resolved and the player was allowed to go whereever, but not before Miss St's reputation was tarnished. I think Occamm's razor in this case would be that school dont actually restrict players, its just media/fan buildup. Of course, there are probably instances, and I know it's a much bigger thing in football than basketball (I've heard kids actually getting denied releases in FB, never in BB), but then again maybe im a cynic and these universities do do intensive limitations consistently.
My vote is kids aren't normally restricted, but it probably does happen occasionally.