Schools justify increased out-of-state tuition by claiming that non-resident students come from families who have not paid taxes to the state, and therefore to the institution. Out-of-state tuition increases the school's earnings, which may be utilized for a number of purposes. Although most institutions publish detailed information about their use of tuition income, some schools prefer to keep their finances private so they can increase tuition without restriction.
In addition to increasing revenue, out-of-state tuition helps maintain local enrollment numbers by attracting more out-of-state students to fill vacant seats. Schools benefit from this practice because it means more money in their coffers from various sources (federal financial aid, state funding, student fees, etc.).
Finally, out-of-state tuition provides some protection against population loss if communities near the school begin to depopulate. If states with large populations of out-of-state students also have high rates of immigration, such as California and Texas, then even though overall enrollment at the school might be decreasing, the percentage of non-residents attending school there could remain the same or even rise slightly as more immigrants are able to pay the higher fees.
Non-resident tuition was originally established to ensure that states provided an education for residents as well as non-residents.
Out-of-state students pay extra since they do not pay state taxes in the state where the university is situated. Lower tuition fees are therefore the state's approach of thanking citizens for their efforts while also accounting for the tax money they have already spent to support their state's institutions. Out-of-state tuition varies depending on the type of institution and whether it is a public or private school.
In addition to lower tuition, out-of-state students also benefit from other advantages over in-state students. For example, they can take classes without regard to age or status (i.e., senior vs. freshman), there is no requirement that they live in campus housing, and many schools offer additional financial aid for out-of-state students. Also, when applying for jobs, out-of-state students do not need to indicate their residency status since they are not required to file federal income tax returns where employment would be based upon such information.
The majority of universities charge out-of-state students higher rates than those charged to in-state students. This is done even though the out-of-state student pays more in taxes than does the in-state student because the in-state student receives benefits beyond a free education. These include health care coverage through their employer as well as access to in-state tuition at public universities.
Each state has its own "public" institutions, which are controlled and funded by the government. Taxation is used to fund these schools, which are paid for by the citizens of the state. This is referred to as "in-state tuition" for inhabitants of the state. "Out-of-state tuition" refers to the expense for inhabitants from other states. The difference is based on where the student lives.
In-state students cannot be charged more than $12,000 per year at public universities. Out-of-state students can be charged up to $60,000 per year at public universities. Private universities have their own rules regarding in-state vs. out-of-state tuition. However, most private universities will charge out-of-state students less than what it costs to educate an in-state student.
The reason that there is a limit on in-state tuition is because taxpayers want to ensure that public universities are not too expensive for residents who need them the most. If a university was able to raise its prices dramatically, then those students who could afford it would simply leave the state to go study at another institution that did not have this limitation.
There are some exceptions to in-state tuition. For example, if you are a resident of an Indian reservation or military base within a state, you can attend any public school in the state without paying out-of-state tuition. There are also options such as "residential tuition waivers" that some colleges offer.
Students who do not live in the state where they attend school must pay out-of-state fees. For example, if a student attends school in Texas but resides in Florida, he or she must pay out-of-state tuition merely because the institution (in Texas) is not in the student's home state (Florida). The same rule applies to students who attend school in Florida but reside in other states.
Out-of-state tuition varies depending on the university. Some charge more while others charge less. There are two types of out-of-state tuition: public and private. If a university is public, it must charge in-state rates to all its out-of-state students. If a university is private, it can set its own rates. Most private universities charge much higher rates than their public counterparts.
There are several factors that determine how much a student will be charged for out-of-state tuition. These include the student's home state, as well as the location of the school he or she chooses to attend. Generally, schools in bordering states charge lower rates than those in other parts of the country.
For example, an out-of-state student attending a Florida university would face a $12,000 annual fee. A Texas resident attending the same university would only have to pay $5,920 due to the bordering nature of the two states. Out-of-state tuition at other universities across the country vary based on location too.
Many institutions offer a whole separate tuition category for online students than they do for regular students. This implies that you are not paying in-state or out-of-state tuition, but rather a separate price. However, be in mind that the cost of online tuition prices may differ from conventional tuition rates. For example, some schools may have lower fees for online courses compared to those who attend campus regularly.
In addition to charging less than in-state students, an online school will often grant more financial aid. This is because there is no requirement that you maintain a certain level of attendance to be eligible for a degree. Thus, if you miss part of a semester or year due to work or family obligations, you can simply finish later without affecting your credit score or graduation status.
However, despite these advantages, out-of-state students usually cannot receive as much financial assistance as in-state students. Also, many institutions that offer reduced rates for online students require you to submit proof of your identity and residence in order to qualify. If you fail to meet this requirement, you will not only lose the opportunity to receive a discount on tuition, but also be forced to pay full rate.
Some states have laws that prohibit institutions of higher learning within their borders from charging different rates based on where a student lives or whether they attend class online. These laws exist to ensure that out-of-state students are not charged more than in-state students.