In-state vs. out-of-state tuition

The basics of paying in-state vs. out-of-state tuition

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Ways to avoid out-of-state rates

When you, your kids or grandkids are preparing for college, figuring out how to pay for that education is an important consideration.

Many students and their families either pay the full cost themselves, take out loans or receive grants to cover all or part of the students' tuition. As you're researching schools to attend, it helps to learn more about both in-state and out-of-state tuition.

In-state vs. out-of-state tuition

When looking at state schools, you’ll notice a difference between in-state and out-of-state tuition levels. Students who live in a state pay the in-state level of tuition at a state school. If a student from another state wants to attend that same school, he or she pays more tuition — the out-of-state rate.

The difference in cost varies by the state and even varies by schools within the state. The cost for out-of-state tuition can be more than double or triple what in-state students pay. Many parents and students enrolling in college for the first time are shocked, and often ask “why is out-of-state tuition so expensive?”

Schools’ reasoning for charging higher out-of-state tuition is because non-resident students’ come from families who haven’t paid tax dollars to the state, and thus to the school. Out-of-state tuition brings in more revenue to the school, which can be used for a variety of purposes.

Can you get in-state tuition?

It's possible to get in-state tuition for out-of-state students, though each state has its own rules. Here are a few ways a student can get in-state tuition.

As you begin your family’s journey through the college experience, talk to a financial advisor. The advisor can help you form a financial plan that allows you to pay for college tuition while still meeting your other financial goals.

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