Evaluating the impact of the D.C. tuition assistance grant program

"In the Fall of 2000, the D.C. Tuition Assistance Grant program dramatically changed the menu of college prices offered to residents of the District of Columbia. The program allowed residents of D.C. to attend public institutions in Maryland and Virginia and pay the same tuition as residents of those states. Between 1998 and 2000 (the first year of the program), the number of D.C. residents attending public institutions in Virginia and Maryland more than doubled. When public institutions in other states were included in subsequent years, the number of D.C. residents attending these institutions also nearly doubled. The increases were largest at non-selective public 4-year institutions in the mid-Atlantic states, particular predominantly black public institutions in Maryland and Virginia. College entry rates by D.C. residents also seemed to increase. The number of first-time federal financial aid applicants, the number of first-year college students receiving Pell Grants and the number of district residents reported as freshmen by colleges and universities nationwide all increased by 15 percent or more, while the number of graduates from D.C. public high schools remained flat"--National Bureau of Economic Research web site.