The study examines patterns in students' choices of in-state and out-of-state colleges, with regard to certain academic and economic variables such as class standing, parental income, financial support, and costs. It then examines the impact that financial aid would have on their choices. A survey was undertaken of 26,903 Pennsylvania public and nonpublic high school seniors. Four choice patterns were examined: (1) first choice in-state, expected to go in-state; (2) first choice out-of-state, expected to go out-of-state; (3) first choice in-state, expected to go out-of-state; and (4) first choice out-of-state, expected to go in-state. The results are examined as they relate to student race, sex, financial aid available, other sources of funds, religious affiliation, parental and peer influences, college reputation, and 14 other variables. It is concluded that financial aid can be used effectively as an incentive, and the data gained can be used in policy formation. (MSE)