Do In-State Tuition Benefits Affect the Enrollment of Non-Citizens? Evidence from Universities in Texas

In 2001, the Texas state legislature passed House Bill 1403 and became the first state to offer in-state tuition rates at public universities for non-citizens who attended high school in the state for three years. As a result of the policy change, the cost of attending college at public universities in Texas fell dramatically for non-citizens. Using administrative data from six universities in Texas, we employ a quasi-experimental design to identify the effects of the policy change on the probability of enrollment. The results demonstrate a large and significant positive effect of lowering tuition on the enrollment of non-citizens at the University of Texas at Pan American and a positive and marginally significant effect on the probability of enrollment at the University of Texas at San Antonio. The results also suggest that the policy had a negative effect on enrollment at Southern Methodist University, a private university whose tuition was unchanged by the policy.