In order to study whether universal college scholarships can reduce inequality in education, we study one aspect of the Kalamazoo Promise that resembles a “natural experiment.” We use the fact that the surprise announcement of the scholarship created a large change in expected college tuition costs that varied across different groups of students based on past enrollment decisions. Using a differences-in-differences analysis, we compare the outcomes of Promise-eligible students to ineligible students, before and after the Promise. Outcomes studied include college enrollment, whether the student has obtained a college degree, and after-college earnings. We use the economical and racial diversity of the district to study group-specific effects.