In-State Tuition Vs. Out-Of-State Tuition: Why Are They Different?

Public schools are often touted as offering an affordable education, and for in-state students, that’s relatively true. But out-of-state students don’t receive the same subsidized tuition costs, often paying two or three times the in-state rate for a public college education.

As the price of attending college increases, it’s important to consider financial factors when deciding where to enroll. In addition to tuition, college students must pay for student fees, textbooks, housing and food. But since these other expenses stay roughly the same for both in-state and out-of-state learners, tuition is one of the most important factors to consider if you want to attend an out-of-state public school.

Keep reading to learn why out-of-state tuition is so expensive and how out-of-state students can lower their tuition costs.

What Is In-State Tuition?

In-state tuition refers to the tuition rate students pay to attend a public college within their own state. Typically, in-state students do not pay out of pocket for the full cost of their education; public schools also rely on subsidies from the state government to supplement students’ tuition payments. Because state residents contribute to the state’s public university system by paying taxes, in-state students receive a subsidized education.

Common Cost of In-State Tuition

On average, in-state students paid $9,375 for tuition and fees at public four-year colleges in the 2020-21 school year, according to the National Center for Education Statistics (NCES). However, tuition costs vary widely from state to state.

Vermont schools charged the highest rate, with an average cost of $17,593, followed by New Hampshire and Illinois. On the other end, in-state Florida learners paid the least in tuition and fees: $4,551.

What Is Out-Of-State Tuition?

Students attending public universities outside of their home states pay out-of-state tuition, sometimes referred to as “nonresident tuition.” Since these students (or their parents) haven’t paid into out-of-state school systems through their taxes, their education costs are not subsidized and they are charged a higher rate. Public colleges depend solely on tuition to cover out-of-state students’ costs.

Common Cost of Out-Of-State Tuition

Nonresident tuition is significantly higher than in-state tuition. Vermont remains the most expensive state for out-of-state learners, charging them an average of $41,963 for tuition and fees in 2020-21, NCES reports—about $24,000 more than the in-state rate. South Dakota charges the lowest nonresident tuition rate at $12,924.

In Washington, California and Florida, an out-of-state education costs about four times more than it would as a state resident. While the rate of increase is the same, however, each state’s tuition prices differ. The average nonresident would pay $25,997 more than an in-state student for a California college degree, compared to $13,782 more at a Florida school.

South Dakota and North Dakota have the smallest difference in cost: less than $4,500 in both states.

How to Help Make Out-Of-State Tuition More Affordable

Attending college outside your home state comes with additional expenses beyond tuition. Moving out of state, for example, is costly, as is traveling long distances to visit home for the holidays. Plus, as an out-of-state student, you don’t have the option to live at home while attending college.

Finding ways to lower your nonresident tuition rate can go a long way when it comes to the cost of college.

Establish State Residency

Moving to the state where you plan to attend college might seem like the most obvious way to get in-state tuition, but it isn’t the easiest. Most schools require you to have lived in the state for at least 12 months prior to your start date to qualify for resident rates; some states, like Alaska, require 24 months. If your primary parent doesn’t live in your desired state, you may need to demonstrate financial independence.

Typically, the school will request proof of your intention of becoming a permanent resident in its state. You may show this by:

• Getting a state ID
• Registering to vote in the state you’re moving TO
• Transferring your car registration and insurance
• Establishing memberships at local groups, such as gyms and churches

The state may question you if you go back to your original state when school isn’t in session. This method can be arduous, so consider other options before attempting.

Look for State Reciprocity Agreements

Many states have established agreements to offer in-state or discounted tuition to out-of-state learners within a certain region. Research whether your desired school or state maintains any tuition reciprocity agreements with your home state.

As one example, the Midwest Student Exchange Program permits residents of eight participating states to attend a regional out-of-state school for no more than 150% of the in-state tuition price. Similarly, New England students can take advantage of a regional Tuition Break program if they enroll in approved majors.

Keep Your Grades Up

Some colleges match in-state tuition prices for high achievers. At the University of Arizona, for example, non-Arizona high school graduates may earn competitive tuition awards of up to $32,000. The University of Alabama offers automatic merit scholarships of at least $6,000 for out-of-state first-years with high GPAs and test scores.

While tuition waivers and merit scholarships aren’t guaranteed, they can make an out-of-state education much more accessible.

Find Scholarships

Not all awards are based on academic merit. If your parent attended college at your desired school, you may be eligible for a legacy scholarship, even if your parent has since moved out of state.

If you can’t get a scholarship through the university, search online for other awards you might qualify for. Students can earn scholarships based on their intended major, religious affiliation, gender or personal situation. Remember: It never hurts to apply.

Consider an Online Degree

Finally, schools may offer discounted tuition rates for online learners—even those living out of state. Some universities extend in-state tuition rate to all distance learners, while others lower their usual out-of-state rate. Keep in mind that distance learning programs may come with additional costs, such as a technology fee, but these costs are relatively low compared to out-of-state tuition prices.

For instance, nonresident students pay $758 per credit at Miami University in Ohio, while Ohio residents pay $295. But the college discounts its E-Campus rates, charging out-of-state undergraduates $350 per credit.

If you’ve set your sights on an out-of-state school and distance learning appeals to you, enrolling in an online degree could be a great way to reduce your tuition costs.

Frequently Asked Questions (FAQs) About In-State Tuition