Author Biography

Kate Ferrin loves attending Utah State University. She is originally from Minnesota, so she loves having mountains in her own backyard. She enjoys paddle boarding, hiking, and hockey. Kate loves music and plays piano, flute, and guitar. She is currently a full-time student pursuing a bachelor’s degree in English Literature.

This essay was composed in April 2024 and uses MLA documentation.

It is no secret that tuition is a burden on many students who attend college. From living paycheck to paycheck to eating Ramen noodles and cold beans out of a can, students try to save money in all avenues of their lives. While college can provide many opportunities to further a career, gain more knowledge, and make lifelong friends, tuition is the factor that trumps the rest. Students often compare different tuition rates between schools in order to determine their school of choice. One of the many factors that helps determine tuition rates is the type of institution. From community colleges to private colleges and public universities, every school charges a different amount. However, private colleges charge all students the same while public universities do not. Public schools charge different rates depending on the students’ resident status. According to a study compiling tuition costs from 1997-2011 authors Brian G. Knight, a Professor of Economics at Brown University, and Nathan Schiff, a professor at Shanghai University of Finance and Economics, the average rate of resident tuition for public universities in the United States between 1997 and 2011 is $6,000 while the average rate of out-of-state tuition is $15,000. This difference creates a burden of thousands of extra dollars out-of-state students must pay simply because they live in a different area. Hannah McCann, a graduate from Belmont University in the College of Law, argues that it “places a significant obstacle in the way of students who wish to obtain a higher education at a university in another state.” Consequently, college students are forced to limit their scope of career and educational possibilities, weighed down by residency requirements, and disproportionately affected by the taxation system. Luckily, feasible solutions such as reducing residency requirements and state reciprocity, can be implemented to reduce the negative effects.

To begin, students often narrow their available possibilities because it is often too expensive to move from their home state. According to the survey conducted by the University of Chicago, “[s]eventy-five percent of Americans believe people do not attend college because they cannot afford it” (“Survey”). Therefore, it is clear the main determining factor of whether or not someone attends college is financial concerns. These fears are often exaggerated by out-of-state tuition rates. Consequently, 42% of students who drop out do so because of financial reasons. (Giovanetti). Clearly, financial concerns are plaguing the nation and need to be addressed. Therefore, students may be afraid to attend a college out-of-state because of these concerns. So, if out-of-state tuition were decreased, then students would have access to numerous different possibilities.

One benefit of attending college out-of-state is the chance to experience different cultures and locations. Writer Toby Franklin, student at Point Loma Nazarene University, interviewed his undergraduate admissions counselor, Connor Mathisen, about the benefits of studying out of state. The first benefit emphasized was the unique chance of experiencing different groups of people and environments. When students experience new cultures they become more open-minded and learn to appreciate different lifestyles. This creates better relations between different groups of people which is beneficial in both personal and academic workspaces. As an example, I have lived the majority of my life in rural, northern Minnesota. There was hardly any diversity in this area and most people had similar career paths, such as truck drivers and farmers. However, I had the opportunity to move to Utah State University in Logan, Utah. Logan is roughly ninety one times bigger than my hometown, so I encounter more diversity, a bigger city climate, and people with vastly different career paths everyday. As a result, I have access to more opportunities; and I have increased my soft skills such as adaptability and teamwork. This is not an isolated event, many students can have the same opportunities as me.

Moreover, experiencing new locations can have a direct impact on an individual’s career. For instance, the College Foundation of North Carolina ensures that a different environment is beneficial because “[c]ompanies often grow in and around areas that have a big pool of graduates ready to work in their industries” (“Where to Attend College”). So, going to a university helps increase students’ career opportunities and allows them to gain better connections because of the wider selection. While some may argue that state schools can provide promising benefits for students, this is not always the case. As addressed by the Institute for College Access and Success “in many parts of the country there are few — and in some cases no — colleges nearby, resulting in ‘education deserts’ where prospective students have exceedingly limited opportunities” (“How Many Students”). Consequently, students may not have a choice to choose a local school and must choose a university far from their hometown. So, to allow students to fully take advantage of experiencing different locations and cultures and becoming more open minded out-of-state tuition should be decreased.

Second, students can thrive in a new community. They can “start over socially…even reinvent themselves” (Franklin). High school is often a steam cooker of peer pressure for adolescents. Many high schoolers try to “fit in” and follow trends because some teenagers connect their personal worth with how others view them. This can lead to a damaged self-worth and a feeling of worthlessness. Additionally, some individuals wish to gain distance from controlling households or parents. So, these students wish to start over in a new place by attending college outside of their home state. This path allows them to not be stuck with the same peers they attended high school with and they can meet people they would have otherwise never met (“Where to Attend College”). With this opportunity, they can fully discover what they enjoy and gain new friends who have the same perspectives as themselves. Then, they become part of a life-long community with individuals that have the same values and aspirations. Through this experience, they can gain confidence in themselves which can help boost their self-confidence.

Finally, experiencing different locations and cultures, gaining new career opportunities, and establishing a new community helps to create independence. Going to college out-of-state is a “great way to exert your independence…[and] living far from home forces you to depend on yourself” (“Where to Attend College”). Expanding on this idea, Mathisen explains without a “safety cushion” of close family, students must depend on themselves for everything from laundry to finding a place to live (Franklin). This challenge can be difficult to overcome, but in the long run students create a better sense of independence and responsibility for themselves which positively impacts both their personal and professional lives. When self-reliance is a natural trait, individuals develop resilience which allows them to take advantage of opportunities that come their way to further their career.  These positive effects, such as open-mindedness, career development, and independence, can only be emphasized and unlocked by more students if the burden of out-of-state tuition is decreased.

Another troublesome factor is residency requirements. In order to be considered eligible for in-state tuition in Utah, an individual must live in the state for 12 consecutive months. During that period the individual cannot leave the state for more than 30 consecutive days even if it is for work (“Utah Residency for Tuition Purposes”). However, other states in the U.S. do not have as strict of laws for their residency requirements. For instance, in Arkansas students at public colleges and universities are considered residents after only six continuous months of living in the state (“Residency Classification”). Furthermore, Tennessee does not have any durational requirement. So, as long as a student can prove they have intent to stay in Tennessee other than for education, they are considered a resident (“Residency: Frequently Asked Questions”). Consequently, both Arkansas and Tennessee students can return home for the summer and still maintain residency status. On the other hand, students going to college in Utah from other states cannot go home for the summer and they cannot take advantage of work opportunities in different states. Instead, they are forced to live in Utah during the summer or pay thousands of dollars extra in tuition simply for returning to their home state. This creates a detrimental effect for students because they must find a place to live, pay rent, buy food, and completely sustain themselves for the summer. Moreover, they are not able to visit their family or friends and keep those social ties strong.

From the discussion of other states, it is clear Utah is requiring an unnecessary length of time for students to gain in-state tuition. Consequently, “due to these durational residency requirements, the thought of having to pay out-of-state tuition rates is often a deterrent to prospective students” (McCann). Additionally, Utah slants their residency requirements against students. Normally when an individual moves to Utah, they only have to live in the state for 183 days in a 12 month period (half of the year), instead of the 335 day requirement for students. The requirements are more strict for students because Utah fears they do not have “intent” to be in the state post-graduation (“Utah Residency for Tuition Purposes”). However, intent is almost impossible to gauge because even Utah residents may choose to leave the state after graduation and an originally out-of-state student may live the rest of their life in Utah. Additionally, individuals may have “intent” to stay but be forced to move away because of career opportunities or family obligations. Overall, students are affected negatively by harsh residency requirements because of a factor that can hardly be measured. One way to effectively solve this issue is to reduce residency requirements in Utah. Instead of not allowing students to leave for more than 30 days, the standard should be 183 similar to other people moving to Utah for reasons other than education. This way, it will relieve the unnecessary burdens nonresidents have to tackle, such as expenses over the summer and not seeing family for an extended amount of time.

Lastly, the reason out-of-state tuition exists is because of taxation methods. For instance, residents of Utah pay state taxes that help fund public universities in their home state. So, any resident who wishes to attend a public university in Utah is charged a resident tuition rate. For Utah State University (USU) this rate is roughly $8,304 per year (two semesters). On the other hand, students who are not residents of Utah have never paid Utah’s state taxes that contribute to their public universities. Therefore, nonresidents are charged an out-of-state tuition rate. For USU it is $24,222 per year (“Utah Residency For Tuition Purposes”). So, the higher tuition rate for nonresidents is simply paying tuition all at once, rather than a small amount every year through taxes. It is important to note that private colleges charge a flat rate for each of their students. For instance, Brigham Young University (BYU) located in Provo, Utah charged the same tuition rate for residents from Utah and nonresidents (“Tuition Fees and Deadlines”). BYU does this because it is not subsidized by taxpayer money.

Furthermore, tax revenue is important for universities like USU. As reported, tuition payments at USU only contribute to a total of 15.2% of funding for the whole university (“Utah Residency For Tuition Purposes”). Consequently, 36.8% of funding is from the federal government and 28.5% is from state taxes. As shown, tuition is not the biggest factor when it comes to funding, instead, the biggest factor is taxes because they combine to make a total of 65.3% of total funding. This is over four times as much as tuition.

While this principle makes logical sense on the surface, it still has the power to disproportionately affect nonresident students. This is because nonresidents often pay both state taxes funding public universities and out-of-state tuition rates (McCann). For example, I grew up in Minnesota and paid state taxes for all of its public universities, such as University of Minnesota-Duluth. Then, I chose to attend Utah State University, a public university outside of Minnesota. As a result, I paid state taxes towards a university and never got any benefit. Furthermore, I was charged thousands of dollars more simply because I moved areas. This problem is not an isolated event. The Science of Engineering and State Indicators institution shows this problem is plaguing all states because every state helps pay for their public universities, contributing roughly $7,917 per full-time student (“State Support”). So, students all over are getting the short end of the stick both ways.

One way to help relieve the discrepancy is establishing a bigger system of state reciprocity. Specifically, tuition reciprocity is an agreement between states that lets nonresident students receive a reduced tuition rate. This program exists because students cannot become residents. So, they continue to pay taxes for their home state while attending school someplace else. Timothy Besley, a professor of economics at the London School of Economics explains that states participate in this agreement because students still pay home state taxes even though they are attending school out-of-state. So, states still earn tax revenue. Most commonly, these types of agreements are from neighboring states. USU is part of the Western Undergraduate Exchange which includes areas from Alaska to South Dakota (“For Undergraduates: WUE”). Additionally, there are several different agreement sectors such as programs for both undergraduate studies and graduate students living in a certain area of the United States. For instance, Utah is part of the Western Undergraduate Exchange (WUE). So, a student living in Arizona can attend Utah State University at a lower cost. The WUE works to help undergraduate students “choose from hundreds of undergraduate programs outside their home state, and pay no more than 150 percent of that institution’s resident tuition rate” (“For Undergraduates: WUE”). Usually, out-of-state tuition is around 300% of the total rate for residents. So, it cuts down the expenses and makes universities more affordable. For example, Utah State University gives $11,500 per year to students from roughly all states from Alaska to South Dakota. This equals to a total of $46,000 in total for four years. This system proves that lowering tuition rates is possible if states work together to mutually help their students (Besley). States are well-equipped to decrease out-of-state tuition because agreements have already been made.

It is critical to note that there are extra requirements students must meet to receive discounted rates. For instance, only approved majors will be able to receive the reduced rate. So, not every student is given the same opportunity (Besley). Also, Utah State University students who accept the WUE rate cannot accept any other scholarship from the university they are attending (“For Undergraduates: WUE”). Additionally, only limited states have established state reciprocity with each other. So, if a student from Florida wishes to come to Utah State University, the WUE program would not help them. Finally, students cannot become residents, so while the university may grant them a large scholarship, they do not have the choice to reduce their tuition rate to the resident rate. When comparing the WUE scholarship and resident tuition, nonresidents end up paying more money in tuition even with the scholarship.

While this is a good program, states should continually work to fight higher tuition costs for students in postsecondary education. First, all majors should be accepted into the program because then all students have an equal playing field and have access to the same universities without unnecessary financial burdens. Second, students should be allowed to accept other scholarships given to them by a university. If a student has earned a scholarship, then they should receive it. Third, all sectors of reciprocity agreements should become collaborative and create one program. For instance, the Western Undergraduate Exchange can work with the Academic Common Market, which is part of the Southern States Reciprocity Agreement, to help increase the total number of states available to students (“Academic Common Market”). Then, a student from Arizona can use state reciprocity to go to a school in Alabama instead of being limited to western states. Lastly, there is the problem of residency. However, this is the structure behind all state agreements. States only agree to give discounted rates because students are not allowed to pay residency, so they continue to collect taxes even though the student is living in a different state. Therefore, it is not likely that states will reduce this requirement because if they do, they will likely discard the entire program (Besley). So, focusing on expanding majors and available states within state reciprocity agreements are feasible ways to decrease out-of-state tuition.

As discussed, out-of-state tuition negatively affects students who wish to leave their home state for numerous reasons because of financial burdens. However, this discussion is not complete without recognizing students who would better thrive inside their home state, more specifically, low-income students. Low-income students are more likely to go to in-state institutions because of the lower tuition rate (Knight and Schiff). Now, this is not to label all students who stay in their home state as low in-come. There are numerous reasons why individuals stay, such as familial ties and personal preference. Although, tuition rates are a driving factor for low-income students. This is especially important because some people fear that lowering out-of-state tuition rates will increase in-state tuition rates to cover the difference, therefore negatively hurting the low-income students by a large margin (McCann). An increase might even have the possibility to discourage individuals from attending college to begin with. Furthermore, nonresidents have the choice to stay in their home state to receive in-state tuition. Another issue people worry about concerning lowering nonresident tuition is that states would have to pass a bill since universities are funded partly by taxpayer money. However, this process to pass such a bill is not in favor of the states because “states worry that offering a subsidized education to nonresidents might leave them footing another state’s education bill” (Knight and Schiff). Therefore, state governments are not likely to pass the bill in the first place.

While these are important perspectives to consider, solutions are available that do not increase resident tuition or place pressure on states where they are not willing to conform. As discussed, residency requirements can be changed to the average length of time. States have already passed these laws for individuals moving to a state for non-educational reasons, so it is feasible they will change the requirements for students. For instance, Utah requires students to stay for 12 months, but normal requirements are only 183 days (“Utah Residency For Tuition Purposes”). Therefore, Utah state legislatures will simply extend the law to cover students. Furthermore, increasing state reciprocity to other states is also feasible because states have already established this system (Besley). So, again, it is simply extending a law they already approved. Most importantly, none of these solutions will increase in-state tuition. So, both types of students will be able to take advantage of any public university of their choosing.

Overall, students are often discouraged to attend public universities outside of their home state because of the financial burden nonresident tuition can create. Then, they are forced to limit their available opportunities. If they cannot afford to attend an out-of-state university then they cannot take advantage of new environments, create meaningful career connections, embrace new communities, and establish better independence (Franklin). Secondly, students are hurt by residency requirements because if they choose an out-of-state school, they cannot return home over the summer to visit their family and friends or live in a different state to pursue a meaningful career opportunity unless it is required for graduation (“Utah Residency For Tuition Purposes”). Finally, students often pay both in-state taxes and a higher tuition rate. So, they are paying more money in both situations. Therefore, they are disproportionately affected by the taxation system. Thankfully, there are feasible solutions to decrease the extremely high rate of out-of-state tuition that is negatively affecting students all over the US. If states reduce residency requirements and increase state reciprocity agreements, more students will be able to attend the university best fit for them without being discouraged or amounting to thousands of dollars in debt.

Works Cited

“Academic Common Market.” Southern Regional Education Board, 10 Dec. 2015, www.sreb.org/academic-common-market.

Besley, Timothy. “Reciprocity and the State”. LSE Public Policy Review, vol. 2, no. 1, 2021, p. 1, doi:10.31389/lseppr.39.

“For Undergraduates: WUE.” WICHE, 23 Feb. 2024, www.wiche.edu/tuition-savings/wue/.

Franklin, Toby. “Four Benefits of Going to College out of State.” Point Loma Nazarene University, www.pointloma.edu/resources/undergraduate-studies/four-benefits-going-college-out-state. Accessed 22 Apr. 2024.

Giovanetti, Erika. “Money Is the Top Reason Why Students Are Dropping out of College, Study Finds.” Fox Business, Fox Business, 14 Jan. 2022, www.foxbusiness.com/personal-finance/students-drop-out-of-college-financial-reasons.

McCann, Hannah. “Privileged for Being Stationary: Why the Practice of Differentiating between in-State and out-of-State Tuition Rates Is Unconstitutional.” SSRN, Belmont Digital Repository, 3 June 2017, papers.ssrn.com/sol3/papers.cfm?abstract_id=2978724.

Knight, Brian, and Nathan Schiff. “The Out-of-State Tuition Distortion.” American Economic Journal: Economic Policy, vol. 11, no. 1, 2019, pp. 317–50. JSTOR, https://www.jstor.org/stable/26641357. Accessed 17 Apr. 2024.

“Residency Classification for Tuition Purposes by Public Colleges and Universities.” Arkansas Department of Higher Education, adhe.edu/File/10_-_RESIDENCY_CLASSIFICATION_FOR_TUITION_PURPOSES_BY_PUBLIC_COLLEGES_AND_UNIVERSITIES.pdf. Accessed 28 Mar. 2024.

“Residency: Frequently Asked Questions.” Office of the University Registrar, The University of Tennessee Knoxville, registrar.utk.edu/student-residency-classification/residency-frequently-asked-questions/. Accessed 28 Mar. 2024.

“State Support for Higher Education per Full-Time Equivalent Student.” State Support for Higher Education per Full-Time Equivalent Student | State Indicators | National Science Foundation – State Indicators, ncses.nsf.gov/indicators/states/indicator/state-support-for-higher-education-per-fte-student. Accessed 24 Apr. 2024.

“Survey: Americans See Cost as the Biggest Barrier to Higher Education: NORC at the University of Chicago.” Survey: Americans See Cost as the Biggest Barrier to Higher Education | NORC at the University of Chicago, www.norc.org/research/library/survey–americans-see-cost-as-the-biggest-barrier-to-higher-educ.html#:~:text=CHICAGO%2C%20May%203%2C%202022%20%E2%80%94,because%20they%20cannot%20afford%20it. Accessed 22 Apr. 2024.

“Tuition Fees & Deadlines.” Financial Services, finserve.byu.edu/students-parents/tuition-fees-deadlines. Accessed 24 Apr. 2024.

“Utah Residency For Tuition Purposes.” Office of Admissions, Utah State University, www.usu.edu/admissions/residency/. Accessed 28 Mar. 2024.

“Where to Attend College: Pros and Cons of out-of-State Colleges.” /Media/Y0dcftqf/Cfnc-Wordmark.Svg, www.cfnc.org/news/benefits-out-of-state-colleges/. Accessed 22 Apr. 2024.