Merit-Based Student Aid and Freshman Interstate College Migration: Testing a Dynamic Model of Policy Change

This study examines how state merit-based scholarships individually and simultaneously with prepaid tuition plans influence the interstate migration of college-bound freshmen. State freshman migration percentages were examined over a 10-year period. Results of an interrupted time-series model suggested that students generally respond to merit-based tuition aid in accordance with our initial prediction based on factors influencing student choice in attending postsecondary institutions. More specifically, many students choose to attend an in-state college in order to be eligible for state merit-based scholarships. Moreover, for home states that adopted both merit-based scholarships and prepaid tuition contracts, student out-migration was further reduced over time.