In-State vs. Out-of-State Tuition: Differences, Strategies, and Savings

College can be a major financial commitment, but the cost climbs even higher for out-of-state students, making education affordability a bigger challenge. According to CollegeBoard, the average tuition and fees for out-of-state students at public schools are nearly triple what in-state students pay. 

If you’re thinking about attending a university in another state, here’s what you need to know about the reasoning behind the cost gap and some strategies you can use to qualify for lower in-state tuition.

Table of Contents

1. Why is out-of-state tuition more expensive?
2. In-state vs. out-of-state tuition cost gap
3. 3 strategies to qualify for in-state tuition
   1. 1. Establish residency
   2. 2. Tuition reciprocity agreements
   3. 3. Tuition waivers and scholarships
4. Takeaways

Why is out-of-state tuition more expensive?

Out-of-state tuition is more expensive because public colleges and universities are primarily funded by state taxes. In turn, these institutions offer lower tuition rates to in-state residents whose families contribute to the school’s funding through taxes. 

In contrast, the families of out-of-state students haven’t paid into the state’s education system, so they’re charged higher rates. This pricing model allows states to prioritize access and affordability for their own residents while still allowing students from other states to attend, albeit at a premium.

Private colleges and universities don’t receive state funding, at least not directly. As a result, they typically offer the same tuition rate to all students, though some may have tiered pricing for other reasons. 

In-state vs. out-of-state tuition cost gap

For four-year public universities, the average cost of in-state tuition and fees is $11,610 per year, according to CollegeBoard’s 2024 Trends in College Pricing and Student Aid report. In contrast, those same colleges charge an average of $30,780 for out-of-state tuition and fees. 

Total annual costs, which also include housing, food, books and supplies, transportation, and other expenses, come to $29,910 for in-state students and $49,080 for out-of-state students. 

That said, those expenses can vary from state to state, primarily due to differences in state funding, cost of living, and available public resources.

Here’s how the averages break down for each state:

State	2024 – 2025 avg. in-state tuition	2024 – 2025 avg. out-of-state tuition
Alabama	$12,220	$30,080
Alaska	$9,270	$26,320
Arizona	$12,830	$34,990
Arkansas	$10,110	$26,180
California	$11,310	$38,130
Colorado	$13,180	$35,910
Connecticut	$17,190	$36,060
Delaware	$15,690	$37,230
Florida	$6,360	$21,690
Georgia	$8,520	$26,500
Hawaii	$11,180	$32,180
Idaho	$8,860	$27,300
Illinois	$15,320	$28,160
Indiana	$10,640	$32,700
Iowa	$10,870	$29,960
Kansas	$10,290	$25,470
Kentucky	$12,140	$26,790
Louisiana	$10,360	$23,300
Maine	$12,360	$31,830
Maryland	$11,160	$27,180
Massachusetts	$15,280	$34,510
Michigan	$15,920	$42,280
Minnesota	$13,860	$27,470
Mississippi	$9,720	$22,130
Missouri	$12,350	$26,060
Montana	$8,250	$30,770
Nebraska	$9,730	$22,770
Nevada	$9,370	$26,210
New Hampshire	$17,360	$34,310
New Jersey	$17,050	$32,110
New Mexico	$9,150	$26,770
New York	$8,730	$22,890
North Carolina	$7,470	$23,740
North Dakota	$10,470	$14,790
Ohio	$13,430	$30,420
Oklahoma	$9,810	$24,360
Oregon	$14,130	$38,150
Pennsylvania	$16,330	$31,780
Rhode Island	$15,690	$34,750
South Carolina	$13,210	$34,840
South Dakota	$9,190	$12,740
Tennessee	$11,310	$25,630
Texas	$11,260	$30,090
Utah	$8,000	$24,740
Vermont	$17,490	$40,500
Virginia	$15,660	$38,650
Washington	$11,850	$36,960
West Virginia	$9,590	$24,810
Wisconsin	$10,130	$30,230
Wyoming	$6,960	$22,740

When a client does not have the money set aside for their child to attend an out-of-state or private school, I encourage them to prioritize public, in-state colleges and universities. If they are interested in out-of-state schools or their child is looking to pursue a specialized program that is not offered in-state, it’s essential to plan ahead so we can explore options to reduce or offset the additional cost.

3 strategies to qualify for in-state tuition

If you’re planning to attend a public school in another state, there are some steps you can take to qualify for in-state tuition. Depending on your situation, however, it may not be automatic. Here are three strategies to consider.

1. Establish residency

The process for establishing residency will vary from state to state. For example, you typically need to live in the state with one parent for at least one year, but that timeline can range from six to 24 months. Additionally, the requirements may vary for independent students. 

Here are just a few examples:

• Arkansas: Must live in the state for six months.
• Massachusetts: Must live in the state for 12 months for colleges and universities, but only six months for community colleges.
• Minnesota: Must live in the state for a full calendar year.
• Nebraska: Independent students must live in the state for 12 months, but there’s no minimum for a dependent student’s parents. 

You may also need to establish intent to make the state your permanent home, even after graduation. Potential ways you can do this include:

• Registering to vote in the state.
• Filing state and federal income taxes with an address in the state.
• Obtaining a state driver’s license.
• Opening a local bank account.
• Registering a vehicle in the state.

Before you start applying for a college in another state, check the requirements to establish residency to determine whether it’s feasible. You can usually find the information on the college’s website. 

2. Tuition reciprocity agreements

Most states participate in tuition reciprocity agreements, which allow out-of-state students to attend a college or university in a participating state without paying out-of-state tuition rates. 

That said, the terms of each program can vary. For example, some may offer in-state tuition rates to eligible out-of-state students, while others may offer a discounted rate that’s still more than what in-state students will pay. Most programs limit reciprocity to eligible programs and schools, so it’s essential to review the terms to determine whether you’re eligible. 

Here’s a look at each regional tuition reciprocity agreement, the basics of what it provides, and the participating states.

Program	Program details	Participating states
Academic Common Market	Qualified students in eligible specialized programs can attend an out-of-state college and pay in-state tuition rates	Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia
Midwest Student Exchange Program	Qualified students will pay no more than 150% of the in-state tuition rate for certain programs; private institutions offer a 10% discount	Indiana, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin
New England Board of Higher Education Tuition Break	Qualified students in eligible programs will pay no more than 175% of the in-state tuition rate; the average annual savings is currently $8,600	Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont
Professional Student Exchange Program	Qualified students in one of 10 professional health programs can get discounted tuition at out-of-state schools; total savings range from $36,500 to $142,800	Alaska, Arizona, Colorado, Hawaii, Montana, Nevada, New Mexico, North Dakota, Utah, and Wyoming
Regional Contract Program	Qualified students pursuing professional health degrees can attend out-of-state colleges and pay in-state tuition rates (or reduced private school tuition rates)	Arkansas, Delaware, Georgia, Kentucky, Louisiana, Mississippi, and South Carolina
Western Regional Graduate Program	Qualified students pursuing an eligible out-of-state graduate certificate, master’s, or doctoral program will pay no more than 150% of in-state tuition rates	Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming
Western Undergraduate Exchange	Qualified students will pay no more than 150% of the in-state tuition rate for eligible programs	Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming

Some states, including Illinois, Iowa, Michigan, New York, New Jersey, North Carolina, and Pennsylvania, don’t participate in tuition reciprocity programs. That said, individual schools may set up their own reciprocity programs with other states. 

3. Tuition waivers and scholarships

Many colleges and universities offer financial aid to out-of-state students in the form of tuition waivers and scholarships. A tuition waiver directly reduces your tuition bill, while a scholarship can be used to cover tuition costs or other educational expenses. 

Depending on the educational institution, you may qualify for a scholarship based on your grades, community service, athletic abilities, or other achievements. 

Schools may also offer tuition waivers for a wide range of students, such as:

• American Indians
• Honorably discharged veterans
• War orphans
• National Guard service members and their surviving dependents
• Family members of disabled veterans, veterans missing in action, and prisoners of war
• Low-income students
• Children of university employees
• Foreign students
• Academically gifted students
• Research students

As you evaluate your college options, review scholarship and tuition waiver opportunities to learn more about your eligibility. 

Takeaways

Out-of-state tuition can significantly increase the cost of college. However, with the right planning, it’s possible to reduce or even eliminate the price gap, thereby minimizing your need for student loans. From establishing residency to exploring reciprocity programs and tuition waivers, proactive research is key. 

Before applying, review the residency requirements for your target state and dig into the financial aid options each college offers. In many cases, you can find everything you need on the school’s financial aid website. The earlier you plan, the more opportunities you’ll have to make an out-of-state education more affordable.

If you find yourself needing student loans, exploring your options is important. We always recommend maxing out your federal student loan options first before getting a private student loan. However, plenty of private student loan options are available—College Ave is our favorite. You can read about all our recommendations here.