Location is a big issue when choosing a college. Many students opt to remain instate because the tuition is cheaper. Others choose a school because it is in their dream location such as Hawaii or New York. Still more want to stay close to home.
I chose my school because the price was low since it was public and instate, but it was far enough away that I was still "going away" to school. Many kids at my high school choose to go to the local university, so I wanted to avoid "Grade 13."
My state, West Virginia, has always had a problem not only attracting out-of-state students, but keeping in-state ones. There is a stigma attached to West Virginia, and on top of that, not many jobs are available and the grad school options can be limited. So even if students stay or come for college, they may not remain after graduation.
New Jersey seems to be having a similar problem, one that I can attest to since many students from there come to West Virginia for college, due to the price. They feel more prestigious colleges are available elsewhere, especially with the close proximity of large cities. You can read the article here.
What was your logic when picking your school? Did you choose instate or out of state? If you had the option to stay at home and go to school right nearby, would you?