I have heard of this, but here’s an article that discusses the issue of how difficult it is for children who have been in foster care to move onto higher education.
[Pennsylvania State Representative Tarah] Toohil is a co-sponsor of House Bill 453 that would create a tuition and fee waiver program for foster children to be made available to state-owned universities, state-related and state-aided colleges and universities, trade schools and community colleges.
The measure would also require that an outreach program be implemented through county agencies to encourage foster children to participate in the initiative.
There are more than 22,000 children in foster care in Pennsylvania and each year more than 1,000 of them age out of the system, according to Toohil’s release. Only 13 percent of them then go on to college.
Here’s one report (PDF) that suggests the nation-wide graduation rate for former foster children is 10%.