Thing is, DP, by adding those penalties you will push more qualified people away from even spending their college dollars here. It's the wrong incentive. No one wants to be restricted to where they can go, so all we'll get is the bottom of the barrel who have no choice BUT to go to our universities because they can't qualify anywhere else, because they will be restricted.
I know that the people I know would of gone out of state for college under such a restriction. People do whatever is best for themselves. Remember, many times, these folks are paying for their own college through loans, private scholarships, etc., the state isn't.
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