Most students and parents know that attending an in-state public college can often be a wise, cost-conscious decision. But many families don’t realize that some private colleges can be good financial neighbors as well. Smith College, for example, where I used to work, offers the “Trustee Grant” (a scholarship worth about half of full tuition) to admitted applicants who have lived for five years or more in Smith’s home town of Northampton, Massachusetts, or in nearby Hatfield (home to the college’s founder, Sophia Smith) See https://www.smith.edu/admission-aid/financial-aid/first-year/merit
Recently, college counselor Willard Dix put together a very helpful list of colleges’ “Good Neighbor Policies” for Forbes.com. You can read it here: https://www.forbes.com/sites/willarddix/2018/05/03/colleges-good-neighbor-policies-reveal-great-opportunities-for-local-students/#20471d6a4367
Note that Will Dix explains that this list is still a work in progress, so if you know of other colleges that offer special breaks to local folks, please mention them below.