How to get in-state college tuition

Most public colleges and universities offer two different rates for tuition: one for in-state residents and one for students from out of state. In-state tuition at four-year public universities averaged $11,260 in the 2023-24 academic year — a staggering $17,890 less than the average out-of-state tuition of $29,150 during the same year, according to College Board. Qualifying for resident tuition, which is often substantially lower, can be a process, but a worthwhile one.

How to get in-state college tuition

There are several opportunities to get in-state tuition. Establishing a residency is the most straightforward path, but the best way will depend on your unique situation.

Establish residency

Residency takes time, and there may be some exemptions for certain situations, like marrying a qualifying resident. Check with your school for specifics, but you’ll generally have to follow four steps to establish residency:

1. Whether you’re a dependent or independent student, you’ll need to establish residency — or prove one of your parent’s residency — in the state for at least 12 months before you apply.
2. Provide proof of residency with a lease agreement, utility bills, pay stubs or a letter from your employer. Living in a dorm does not typically count as living in the state.
3. Provide proof that you’re a U.S. citizen, permanent resident or a noncitizen with an eligible visa.
4. Provide proof of a long-term stay with a driver’s license or vehicle registration from the state.

Regional exchange programs

Some states participate in regional tuition exchange programs, which allow students in neighboring states to qualify for a reduced tuition rate at select schools. While it may not be as low of a cost as in-state tuition, it could still save you thousands.

For example, the Western Undergraduate Exchange includes 16 states and territories. Students who participate in this program won’t pay more than 150 percent of the in-state tuition rate if they attend a school within the region. If a school charges the average in-state tuition for 2023-24, which is $11,260, you would pay at most $16,890 instead of the average out-of-state tuition of $29,150.

Visit the National Association of Student Financial Aid Administrators for a complete list of other regional exchange programs. If you can’t find one, you may want to look into other options, like reciprocity agreements or student exchange programs.

Reciprocity agreements

Instead of or in addition to a regional exchange program, some states may have reciprocity agreements with individual states. For example, Wisconsin residents can attend public schools in Minnesota and pay in-state tuition rates, and vice versa. Check with your state to find out if there is an agreement like this in place.

Student exchange programs

Some colleges have agreements with other schools to provide in-state tuition for students from those schools. The National Student Exchange has more than 150 participating schools in the U.S., Canada, Guam, Puerto Rico and the U.S. Virgin Islands.

If your school is a member institution and you attend another membership institution you’ll pay either the hosting school’s in-state tuition rate or your home school’s tuition rate. You can stay at a host school for only one full academic year but spend time at multiple participating schools during your college career.

Is establishing residency worth it?

Taking the time to establish residency can save you a ton of money — an average savings of $17,890 per year adds up to $71,560 over four years. However, it can be challenging to meet all the residency requirements, especially if you’re a younger student and still primarily dependent on your parents.

If you’re thinking about taking a gap year to complete the process, consider that it will delay your college graduation by a full year. This isn’t always a bad situation — a gap year could give you the chance to work and save up for college expenses and establish financial independence.

A significant drawback of establishing residency is that you must relinquish your residency status in your home state. You’ll no longer be registered to vote there, and if the income tax rate is higher in the new state, you’ll need to factor in that additional cost.

Do your due diligence on the process and how likely it is to pay off. If it doesn’t work out, you may graduate a year later and still pay a higher out-of-state rate.

Other ways to lower tuition costs

If you don’t qualify for in-state tuition, or even if you do but are still seeking ways to save more money on tuition, scholarships, financial aid and dual enrollment can help lower tuition costs. By lowering costs, you won’t have to rely as heavily on federal or private student loans.

Scholarships

One of the best ways to fund your education is through scholarships. Unlike with student loans, you don’t have to pay back scholarship money. Your school may offer scholarships based on your financial need, but you may also qualify for scholarships based on your grades, athletic achievements, heritage, experience and other factors.

Additionally, many private organizations offer scholarships and grants to college students who qualify. Websites like Scholarships.com and Fastweb provide access to millions of opportunities.

Federal financial aid

Both in-state and out-of-state students may qualify for federal financial aid, including student loans, grants and work study. Federal grants, like the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG), are given to students who qualify based on demonstrated financial need.

Federal student loans are also an option. The amount available varies depending on your year in school and whether you’re an independent or dependent student. Upper-level students have a higher federal student loan limit than first-year students, and independent students have a higher loan limit than dependent students. Federal student loans also come with protections and options for programs like student loan forgiveness.

State financial aid

Most states provide grants only to students attending in-state programs, but this varies by state. Visit your state’s Department of Education website to see what its funding rules are.

Dual enrollment

If you’re still in high school, see if your school offers dual enrollment. This allows you to take community college classes while still in high school. You’ll earn community college credits that may count toward your college degree.

This strategy works best if the community college has an articulation agreement with the four-year school you hope to attend later on. This means that your credits will automatically transfer as long as you maintain a certain GPA.

Bottom line

Establishing in-state residency is the most direct path to qualifying for in-state tuition rates. If in-state residency is not an option, other options exist, including reciprocity agreements with other states and regional exchange programs.

A student budget calculator can help you visualize just how much of a difference in-state or reduced tuition can make. With some research and planning, you can find avenues to keep your tuition costs in check, no matter where you decide to attend school.