My state of WV allows out of state, as long as the college involved does not charge for the logo (the state splits the extra fee with the "sponsor" which is the local alumni chapter) and they can sell 200 plates. We only have Virginia Tech and Penn State. Some other states that do this are Virginia, which has over 60 out of state colleges, NC which has about the same, and Pennsylvania. Along with Gerorgia, which has nearly 400.
The college with which I am associated has requested alumni plates from both Kentucky and Ohio, but both will only do in-state schools. We do have Virginia and are working on NC.
It seems confusing to the cops or hit and run witnesses, because, it is a Georgia North Carolina alumni plate or a North Carolina Georgia alumni plate? But then again, Kentucky has an Ohio County and it puts it county names on the plates.
Reading their website, I like what NC does. The money for alumni plates from out of state and private schools goes to the scholarship fund of the University System (which is the general over-all system of state colleges, not just the one in Chapel Hill). So if you buy a Duke or Georgia Tech or Penn State plate in NC, you are helping kids attend UNC or NC State and so on.