It will be interesting. I'm a long-time NM resident and have graduated from high school and 3 higher education institutions here. It has been extremely easy to get free education here for a long time, I don't think this will change much. I forfeited all of the low-hanging-fruit scholarships after high school (moved away for a while), and when I returned I started from scratch (full tuition at a community college). Even so, combined cost for my associate degree, bachelors, and MD was... very little, due to LOTS of easy access to various scholarships and state-sponsored loan repayment programs that I picked up along the way.
Partly as a result, I'm still in the state providing healthcare in a high-needs community, so I think their strategy worked -- mutually beneficial.