Is Out-of-State School Worth It?

Most college students attend schools close to home, but sometimes an out-of-state school makes sense.

Choosing an in-state school can save undergraduates thousands of dollars each year. According to the National Center for Education Statistics (NCES), in-state students at public schools in 2018 saved over $17,000 per year compared to out-of-state students. Public colleges and universities receive funding from state taxes, which is why they usually offer tuition discounts for state residents, while out-of-state students pay a higher rate.

The majority of college students choose an in-state school, but in some cases, choosing an out-of-state school is a better move. For example, students seeking specialized majors might need to look out of state, and some states offer reciprocity agreements that cut out-of-state tuition rates.

This article weighs the pros and cons of attending in-state or out-of-state schools, exploring when it makes sense to consider an out-of-state school.

Attending college in the state where you live offers several benefits, which is why many students go that route. In fact, according to a 2020 report from Sallie Mae and Ipsos, 80% of college students choose an in-state school. Learn more about these benefits below.

Attending an out-of-state college or university makes the most sense for students seeking specialized programs that in-state schools may not offer. Similarly, graduate students may also prefer an out-of-state program with a strong reputation in a particular subject area. Fortunately, scholarships and reciprocity agreements can make out-of-state schools more affordable.

Public universities and colleges receive funding support from their state legislatures. Because this funding comes out of state taxes, state schools offer tuition discounts for in-state students, who are already paying those taxes. Essentially, in-state students are already paying for state schools whether they attend college or not, so their tuition rates reflect that. Some colleges also use in-state tuition rates as an incentive to keep high-performing students at home, where they can contribute to the local economy.

However, funding for public colleges and universities has been cut substantially in most states in recent years, and those schools have had to make up budget deficits by raising tuition rates. These higher rates are most noticeable for out-of-state and international students, though in-state tuition rates have also been increasing.

Many schools offer scholarships for out-of-state students — especially those from low-income or underrepresented demographics. These scholarship programs attract qualified students to the school by providing a significant tuition discount, which can reduce tuition to in-state rates or even lower.

In addition to scholarships, out-of-state students can often benefit from reciprocity agreements. These agreements offer tuition discounts for students attending out-of-state public schools in partner states. For example, the Western Undergraduate Exchange includes 16 states and territories in the western United States, including California, Washington, Montana, Hawaii, and Alaska. Students from a member state can attend undergraduate programs in other member states for significantly reduced tuition compared to the usual out-of-state rate.

Many public universities offer more than 100 different majors, but that doesn’t help students interested in a unique major. For example, only a few colleges offer specific degrees in unmanned aircraft system operations or robotics. Students seeking those degrees may need to attend college out of state.

Similarly, some states are well known for fields linked to their local economies, and their public colleges offer stronger programs in those subjects. For instance, Nevada offers strong casino management programs, while Kentucky colleges offer equine studies programs. Students with specialized career goals will get a better education attending an out-of-state school with a strong reputation in their area of interest.

At the graduate level, it often makes sense for prospective students to attend out-of-state programs. Graduate schools often have particular fields where they specialize, and attending an out-of-state program with a strong reputation for their field can help graduates on the job market. This is especially true for fields like healthcare, where access to high-end residencies can have a big impact on career trajectory.

Many universities offer fellowships and assistantships to help support graduate students financially. These benefits often include tuition waivers in exchange for work as a teaching assistant or adjunct, which can help out-of-state students afford the program.

When it comes to choosing colleges, prospective students should always consider online options — both in-state and out-of-state.

Many online schools offer tuition discounts for fully online students. At some schools, online learners even pay in-state tuition rates, regardless of where they live. Tuition policies for online learners vary depending on the school, so prospective students should research discounts for out-of-state students at their potential schools.

Attending an out-of-state online program allows students to pursue prestigious specialty programs without relocating. However, keep in mind that some online programs have in-person requirements, including occasional campus visits or intensives. This is especially common in fields like nursing, engineering, and education. Research whether an online program allows distance learners to complete in-person requirements locally before enrolling.

Header Image Credit: FatCamera | Getty Images