User blog comment:Jkphantom9/RWBY clip on Lazer Team Livestream/@comment-3146930-20140622170015/@comment-3257939-20140622193118

I agree. Blake and Jaune got into Beacon the same way, although Ozpin probably knows about their transcripts, and remember the production diary where Mercury and Emerald where talking in the middle of the street? Cinder probably found them and train them but never sent them to real crimes that could blow up their covers.

Penny is also fighting in the tournament but she's probably not from a school because of the way she looks excluded to the outside world and her faction never showed potential teammates. If Pyrrha and Mercury are fighting one on one then the tournament might accept everyone who is up to fight. Beacon and some others are students but doesn't necessarily mean the tournament is for students only. It's most likely that Mercury and Emerald were sent to participate but not representing a school, instead, they are fighting because they want. At least, that's what they want to make people believe.