Establishing In-State Tuition

Choosing the right college involves several considerations, and most parents would rank financial issues at the top of the list. If you are going to help fund your teenager’s college education, you should have expectations and limitations on just how much money you are willing to sink into the endeavor. Some parents may put a cap on how much they will pay, while some may agree to in-state tuition rates and leave anything over those costs to the student.

For the family that falls into that second category and has a teenager who has her heart set on attending a public out-of-state institution, there are some options. First, of course, is to apply for scholarships or grants—a task that requires lots of research and dedication—but it worth the effort. The student also can apply for student loans, but another option that I hear many young people discuss is to move to the state with the desired university and establish residency.

I believe that option appeals to many young people because it allows them to move out of mom and dad’s house as planned and become their own person. To meet the “domicile” requirements, most universities require that the student reside in the state for a full year and demonstrate a physical presence and prove intent of making the state his or her home. That demonstration includes things like holding a full time job, obtaining a driver’s license, registering a vehicle, owning a home or holding a lease agreement, going through all needed changes of addresses, and paying state taxes. In addition, mom and dad can no longer claim that student as a dependent on their taxes.

But I caution that the student do some research before setting her heart on this option. Like many people, I assumed that any student could pursue this course as long as he or she was 18 years old. Graduate from high school, move to California, establish residency in a year, and apply for in-state tuition. Unfortunately, not all states allow an 18 year old to establish residency on their own for purposes of in-state tuition. Two that I know of, Colorado and California, do not consider domicile separation from parents as means for in-state tuition if, at the beginning of the 12-month domicile year, they were 22 years of age or younger. I know of two under-23, Colorado residency-establishing hopefuls whose school plans were dashed when they discovered this hitch. Checking Web sites of a few other state’s universities—Oregon, Nebraska, and Florida—it appears they do allow in-state tuition for students over 18 that have established domicile separation.

In my research, I also discovered that Texas A&M University allows a “non-resident student who holds a competitive academic scholarship of at least $1000 for the academic year or summer for which the student is enrolled” to pay in-state tuition and fees. That seems like a great deal.

The point is to do your research before starting on any path. The time and effort you spend discovering the restrictions, or the opportunities, of the preferred college is well worth it. What are the rules governing residency requirements for the university your student fancies?