Is there a way to set Profile Visibility to be checked by default. I am about to 'deploy the site' and I would like to have the highest security settings made by default so that I can have people opt to disclose more instead of having to make them think about it.

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The default is unrestricted as you've pointed out, as nearly half of users opt for this option. I'd prefer people read and understand what they're turning on, because what happens when they don't understand is they attempt to send their Profile to kids, parents, friends, colleagues etc. and then don't understand why it doesn't display (they can see it themselves and they don't understand why other's can't). And then they ask how to fix it. Having said that, you might want to send an initial welcome email to all Classmates that describe the Profile privacy features and remind them that privacy features are available. Shortly you'll be able to edit the defult outgoing welcome email (coming soon under the Preferences area) and you could even put these instructions right in the default welcome email.