The purpose of the current study was to examine the academic consequences of attending an institution that is not considered an "academic fit" for a student. The results from the current study show that more able students perform better in college in terms of first-year GPA and retention to their second year regardless of the institution they attend. Additionally, after controlling for ability, students attending more selective institutions perform better in college. However, the results do not support an academic fit effect above and beyond individual and school effects. The results have implications for higher education admission policies. Specifically, institutions that want to maximize the percentage of admitted students that are successful and return for their second year should not minimize the academic qualifications of the applicants. They should not be worried about selecting "overqualified" applicants, who they believe may be bored or not challenged enough at their institution, as these students earn higher college first-year GPAs and are more likely to return for their second year. On the other hand, students who are not academically qualified are more likely to earn lower grades and leave the institution. (Contains 3 endnotes, 6 tables, and 3 figures.)