The Student’s Guide to In-State vs. Out-of-State Tuition

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Choosing the right college can be a daunting task, and one major factor to consider is the cost of tuition. As a student, choosing between an in-state and out-of-state school can significantly impact your finances.

Tuition is generally more expensive for out-of-state students, who, as nonresidents, don’t benefit from the educational subsidies funded by the state’s tax. Because in-state students or their families have paid taxes that contribute to public university funding, they receive a reduced tuition rate.

Below, learn more about the differences between in-state and out-of-state tuition and find tips for qualifying for in-state tuition as an out-of-state student.

In-state tuition is the fee that students pay when they attend a public college within their state of residence. This reduced fee is possible due to state subsidies provided to public universities, funded by the taxes paid by state residents.

As a result, in-state students usually pay significantly less than out-of-state learners. During the 2021-2022 academic year, the average tuition at in-state, public institutions was $9,596 annually, according to the National Center for Education Statistics (NCES).

To qualify for in-state tuition, prospective students must meet state-specific residency requirements (typically living in the state for at least a year) and their school’s mandates.

Choosing an in-state school may come with more advantages than just in-state tuition. Studying in your state can minimize travel expenses, and it can be comforting to attend school in an environment you already know. In-state students may also have access to additional financial aid and scholarships.

Out-of-state tuition is the fee students pay when they attend a public college or university outside their state of residence.

Since out-of-state students and their families haven’t contributed to the state’s tax revenue that supports these institutions, they’re not generally eligible for the lower in-state tuition rates. Some states have reciprocity agreements with other, neighboring states, however, which can allow out-of-state learners to pay reduced tuition.

Out-of-state students can pay two or three times more in tuition than in-state students. Per NCES, the average tuition at public, out-of-state schools was $27,457 per year in 2021-2022 — significantly higher than the in-state average.

The average tuition rates for public four-year colleges and universities can vary significantly across different states and schools.

During the 2021-2022 academic year, for example, in-state students in Vermont paid an average tuition of $17,683 at public universities, while those in Florida paid just $4,613, according to NCES.

Meanwhile, out-of-state students in South Dakota paid an average of $13,194 in tuition — less than in-state students in Vermont.

Remember that these amounts only cover tuition and fees and don’t include other costs such as housing, textbooks, and personal expenses.

Students have a handful of options for getting in-state tuition at an out-of-state college, provided they meet the eligibility requirements.

Some universities charge children of alumni in-state tuition and allow them to apply for legacy scholarships.

Institutional scholarships are given directly by the college and can be based on a variety of factors such as merit, need, academic program, or other unique stipulations. Legacy scholarships, on the other hand, are awarded to students who have familial connections to alumni of the college they are applying to, regardless of their residency status.

Many public colleges have reciprocity agreements that allow students from nearby and bordering states to pay in-state tuition and vice versa.

For example, the Western Undergraduate Exchange allows students from 16 different states to attend and pay in-state tuition rates at over 160 universities in those states.

Many institutions charge lower-than-average out-of-state tuition fees. In fact, depending on how expensive your home state is, you may find out-of-state universities that could save you money.

For example, Western Carolina University’s out-of-state tuition was $8,532 for the 2023-2024 school year. In contrast, West Texas A&M University charged $9,664 for in-state students. Don’t assume that an out-of-state school will automatically be more expensive.

Disclaimer: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.