I can't offer too much insight regarding undergrad GPA's, but I've also been shut out as of today and am refusing to feel defeated. I'm opting to view this next year as time to strengthen myself as a candidate in ways that will make up for what I'm thinking of as my weaknesses, namely my relatively recent interest in English (became a major last year), lack of an M.A., and subject test score in the low 600's -- probably all making my breadth and depth of knowledge as well as my commitment seem questionable. As long as you have a good plan for the next year, it seems like you can re-apply as a stronger, more knowledgeable, more determined candidate. Best of luck and well wishes.