Reuter, Economics B2
The Out-of-State Premium
Wisconsin colleges are fine, right? But what if I want to attend school somewhere else instead? I will have to pay almost triple the price as everyone else, that’s what.
The National Bureau of Economic Research states that “roughly 75 percent of students nationwide attend in-state institutions.” That still leaves tens of thousands of already-poor college students struggling to pay out of state tuition costs, assuming they’re not on scholarship.
Out-of-state tuition is more expensive than in-state-tuition because non-residents of that state are not paying the taxes that fund that school. However, they are paying taxes that fund a different school. For example, if I would want to attend the University of Georgia (Athens, Georgia) I would, as a Wisconsin resident, pay $31,120 instead of residents’ $12,080 [Afford]. And that’s just tuition, not to mention the extra $700 estimated in books and supplies. This is because I don’t pay taxes to the state of georgia and fund that school like the residents there do. This also means, though, as a wisconsin resident, I pay taxes on UW-Madison (Madison, Wisconsin) even though I do not attend that school. I am still paying my money to the government, just not to the same state in which I would be attending college.
The idea is that you are getting the best use out of the taxes you pay, but if I’m not going to a Wisconsin school, I’m not utilizing that resource anyway. Perhaps Georgia doesn’t want me taking the spot of a taxpayer, but if I am a more qualified applicant, then I should get the seat anyway (but this interferes with college attainment numbers and in-state percentages, which is a conversation for another time). Should I still have to pay the extra $19,040 dollars to attend the school? Technically, it would be full circle, because there are Georgia residents paying for UGA that are attending a different state’s school, or a private school instead. UGA would still be getting money, just not from me, specifically. Is it then my responsibility as a student to give them even extra? The state government officials setting the gap say yes.
This also encourages students to attend institutions that may be a lesser fit for them. Say I live in Vermont or Rhode Island, am from a financially struggling family, and I would like to earn a degree in aerospace engineering. If I stay in-state, I save money and can afford the tuition, but am going to a school that less suits my needs because no colleges in my state offer a graduate degree in my field. If I go to Purdue in Indiana, I am going to a college that much better fits my needs as a student, but I am now in crippling debt, putting stress on my family and myself, and cannot afford to go. I choose an in-state school, am not happy, and not receiving my degree. Perhaps I’m so anxious and burdened by an extra job that I’ve now dropped out. Without a large out-of-state tuition gap, I could’ve had the career of my dreams. Instead, I have settled, because that’s what I was monetarily forced to do.
Therefore, I believe that in-state and out-of-state tuition should be the same, or at least more similar in value than they currently are, for the same quality of education.
Works Cited
“2018-19 Tuition and Fees at Public Four-Year Institutions by State and Five-Year Percentage Change in In-State Tuition and Fees - Trends in Higher Education - The College Board.” Research, 3 Sept. 2019, research.collegeboard.org/trends/college-pricing/figures-tables/published-state-tuition-and-fees-public-four-year-institutions-state.
“Afford.” UGA Undergraduate Admissions, www.admissions.uga.edu/afford/.
Chandler, Ryan. “Everything You Need to Know About Out-of-State Tuition.” CollegeXpress, www.collegexpress.com/interests/public-colleges-and-universities/articles/financial-aid-public-colleges/everything-you-need-know-about-out-state-tuition/.
G, Brian, et al. “The Out-of-State Tuition Distortion.” NBER, 29 Dec. 2016, www.nber.org/papers/w22996.
Molly. “Residency: Its Impact on Tuition Price and College Financial Aid.” Peterson's, Peterson\'s, 28 June 2018, www.petersons.com/blog/residency-its-impact-on-tuition-price-and-college-financial-aid/.
Nelson, Ryan. “In-State vs. Out-of-State Tuition: What Students Need to Know.” GradLime, 29 May 2018, gradlime.com/in-state-vs-out-of-state-tuition/.
I've never really questioned the idea of in and out of state tuition before. It made sense to me, that out of state was more because you aren't paying taxes to fund the school. However, when you pointed out that you still have to pay taxes to the in state schools, even if you do not attend there, it all started to make less sense. If you are paying taxes, money to the government, you should be able to attend any school you want because it's not like going out of state you just aren't paying any taxes at all. The ideas that you presented put a new perspective into my head about the tuition of colleges in America.
ReplyDeleteI completely agree, as I've been navigating through college applications, I've been struck by how expensive out-of-state tuition is. I always thought I wanted to go somewhere away from Wisconsin, but my fear of immense crippling debt has a huge effect on what school I'll go to. I've never thought about the fact that even if I don't attend a Wisconsin college I have to pay for it, but knowing that I really can't comprehend why tuition for non-residents continues to increase.
ReplyDeleteI feel another common problem with this is the fact that more scholarships are often awarded to people in state, simply for being in state, than out of state students. Despite the fact out of state students are paying triple an in state student, the latter gets the most financial support in the long run, creating an almost monopoly against the former. What I have seen done, for example, are what a lot of Ivy Leagues are doing. Many Ivy Leagues no longer give out merit based scholarships (which makes sense, as the caliber of their students is already so high), and what ends up happening is due to the influx of more wealthy families, families even in a bit of need suddenly get paid for. For example, my cousin (from Michigan) is attending Harvard. Despite the fact that her family makes a decent amount of money (they built their own house, for example), she is paying $400 a semester for tuition. This doesn't take into account things like room and board or books, but $400 is an extremely low number comparatively to other schools. Could other schools do this? Or is this an Ivy thing, where if you "work hard enough to get here, you deserve cheap education?"
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ReplyDeleteAlthough this is the harsh truth, there are other ways in how to get out of paying out of state tuition. If you are looking to stay in the college you want to go, this will limit the out of state tuition. You must only pay this tuition for 1 year, this is because in order to become a resident of a state you must live there for at least 1 year and in many cases, there are states that require less time. This would be a great way to get to avoid this large payment. This is why I believe that the money for out of state tuition should stay the same, as it would probably cause many problems for smaller colleges.
Thinking about what college to go to is hard enough, and wondering what the right option is best fit for you and what will help you in the long run, are all tough to do. It sucks knowing that potentially the best option for everyone is possibly out of their state, and forcing them to pay more money for education, it doesn't seem right. I completely agree with our points on this one. In-state and out-of-state tuition should be the same, because it lets students get the best education that they deserve, without pushing them away because of their situation with money. There should be something done, a new rule set in place to help students out get the best education. I have even thought about going out of state for college, but looking at the tuition for the schools out of state is scary, and really makes me have a second thought if it's even worth it.
ReplyDeleteI completely agree with your claim that out of state tuition should be the same or similar to in state tuition. Even though I believe this, I don’t see it coming true in the future. This is because, as you mentioned, universities give a cheaper tuition to in state residents since they pay state taxes and charge more for out of state students since they never contributed tax dollars to the university. One thing that I have found is that some states are more lenient on out of state tuition than others. For example, I’m planning to go to school in Utah, where they grant residency to out of state students that live in Utah for a year and pay taxes. After the student gets residency after freshman year, they only have to pay in state tuition. I think that this is a good solution to this problem and that more states should follow suit. I’m not sure if other states do this as well, as the reasoning behind it is that Utah wants to charge less for out of state students, since most go to school in Utah for religious reasons.
ReplyDeleteI really like this article as I kind of have been wondering for awhile why out-of-state is so much more money than in state. The graphs and statistics really bring about mathematical information and a more data related analysis which allows for both psychological and analytical dsicussion as to why this is.
ReplyDeleteEven though we may want this system to change, I see to change in sight. Federal taxes enforced by the government are not simply going away. Essentially, when we pay our taxes that go to in-state colleges, that is part of the fee of college. When we do this, we are seemingly paying tuition years in advance, making it a more sensible choice to join an in-state college. But, when we choose a college out of state. We have NOT been paying taxes to help support that college. This means that all of the taxes we paid are essentially useless in paying for our college. Because of this, the cost of out of state college is much more than that of in-state, because such colleges are more valuable to us, creating a higher demand for such a valuable skill, and as the law of demand states, as demand increases, so does the price. This is why college outside of our state costs about 3x as much as in-state tuition.
ReplyDeleteThe way in-state vs out of-state tuition was explained in this blog was really interesting. I always thought the different fees made sense because taxes and stuff BUT you’re paying for in-state colleges, even if you don’t go there. If you’re not commiting tax fraud, you should be paying in-state tuition for any college. This definitely made me think about college tuition in a different way.
ReplyDeleteI never really thought about it that way, that we are paying taxes towards schools in our state. I agree that tuition should be the same no matter if your in or out of state, money is a huge driving factor into where people decide to go to college. Even with grants and loans, students are still in debt as they get older. I am glad I read this because I never really knew about the why when it came to in-state vs out-of-state tuition. I feel that the tutition should be the same but don't see it happening anytime soon as schooling seems to be getting more and more expensive as time goes on.
ReplyDeleteThis is a really good point that I think a lot of people don't necessarily consider to the full extent that they should. Most people (myself included) react to out of state fees as simply the way that it is. Before reading this I had never really considered the injustices that are caused by out of state fees or how many people attend a university that is unfit for them just because it is cheaper. The graph also adds a really interesting visual that adds a lot to your topic!
ReplyDeleteI had never really thought about the reasons for why out of state tuition is so much higher for non residence of the state. The idea of paying exuberant amounts of money to attend and out of state school while at the same time your family is paying taxes for a school you are not attending is insane. I definitely agree that in state and out of state tuition should be the same, or at least not have such a giant gap.
ReplyDeleteI do agree with the statement that a lot of schools are more expensive out of state which differs people from going there, but if an out of state school wants people from other parts of the country many times they are willing to give larger scholarships in order to persuade students with a lower cost. Also there are a lot of out of state schools that are relatively cheap for students to attend. Although they may not be the most prestigious schools like the ones you mentioned in your blog they are still quality schools and will allow students to travel away from home.
ReplyDeleteTuition for out-of-state colleges is scary to look at. It's imagine how I'd pay for tuition that's $25,000-$30,000 per year. The graph that you had in your blog was really interesting to look at because it puts perspective on the massive difference in prices. I also like the real-world example you added to your blog and puts perspective to the situation.
ReplyDeleteWow, it's really unfortunate that money is what is the barrier between someone going to a school that will be beneficial to them. I never thought about the logistics behind in-state and out-of-state tuition with all the taxpayer money! I definitely agree with you that in-state and out-of-state should be much closer in tuition (or even the same) because, after all, we all live in the same country and we are all paying taxes no matter what. Money shouldn't be the entity that holds students from following through with their goals... but that's the reality and something needs to be done to change it. There needs to be equal opportunity for everyone!
ReplyDeleteI really like that you touched on this topic. It seems that our school is always promoting colleges/universities for their graduate students, but almost all of the schools promoted are the UW-System schools. But that is not me. I am on the same page as you. I do not want to stay in the UW-System when I go to school and if I do that, my college fees will be significantly more than any other school in Wisconsin. I really liked that you talked about this because it seems to me that I was the only one that didn't want to stay in the UW-System!
ReplyDeleteI have never thought about all of the money that tax-payers are paying to the state government as funding for in-state students, and then those tax-payers attending a school somewhere else and having to pay even more since they did not pay the state taxes in that state. I agree that the prices should be changed significantly so that they are much more similar, but with taxes in each state going towards different things, some states might charge their residents more but then still have expensive college due to money going towards other things. All in all, it will never be “fair” or totally equal, but making in-state and out-of-state tuition much closer would be a step in the right direction to getting happy, educated citizens.
ReplyDeleteYou made a really good point about if you don’t want to spend all this money on your dream schools, so instead you go to a school that is less expensive but unsuitable for yourself. I think, like what you said that the tuition should be more similar in price. It’s crazy to think that If you lived in Georgia, the tuition would be around $12,000 but if you don’t the tutoitn would be around $31,000. This is a huge jump in prices.
ReplyDeleteYour point about the student that wants a degree in aerospace engineering is very well put. Colleges in smaller states with smaller populations may not offer certain majors or programs because they have a smaller student population and less money. This leads to students in those states to have to choose between staying in state, affording tuition, and failing to get into their desired field; or going out of state, failing to afford tuition, and therefore failing to get into their desired field. In your situation, neither choice allows the student to get a degree in aerospace engineering. If out of state tuition is lowered nationwide, students would be able to get their dream degree and hopefully their dream career. Problems arise when we consider the fact that out of state students don’t pay taxes to fund universities. If out of state tuition is the same price as in state tuition, the quality of universities will likely worsen. There would be less money brought into the college because out of state students wouldn’t be compensating for the fact that they don’t pay taxes to the state they’re attending college in. It makes sense, but it’s unfortunate to see that students aren’t getting the degrees they want due to a lack of equal opportunity. College used to be seen as something useful for a career, but not necessary; it’s now seen as something essentially necessary, but it's not available for all.
ReplyDeleteI agree that out of state tuition and in state tuition should be the same amount. If you were to go to a out of state college you are going to be studying the same thing if you were going to a in state college. That would also have more people going to out of state colleges which could also potentially bring more money for those colleges.
ReplyDeleteI agree very much with your statement that colleges should have the same tuition no matter where you live. It’s interesting to see why it does cost so much more as everyone just accepts it and doesn’t really question anything. You made a very compelling point regarding the fact that this takes away from majors that someone who might not be as wealthy as others may want to participate in. This is so unfortunate that we are limiting education based on where you live as everyone should get a fair chance.
ReplyDelete10/4/19- I definitely agree with everything you say on this blog post. Part of my mindset is that our parents pay taxes, we don’t as students. So if we go to a school out of state then the price is far as a new adult. If someone goes out of state they are more likely to be a wealthier family where the parents pick up some of the cost, but this isn’t fair for your scenario with a not as wealthy family. There are possibilities like the reciprocity where you recieve in-state tuition for schools in Minnesota, Iowa, Illinois, and Wisconsin so I don’t know if there is that big of a problem because there are ways around it.
ReplyDeleteI 100% agree that the tuition for in state and out of state should be the same. This was super interesting to read for me since I'm planning on going to Hawaii for school. It's crazy how much of an up charge it is for the simple fact that you didn't live there before applying to school. I feel like if schools were to have the same tuition it would encourage more people to get out of their comfort zone and actually take that big step to try something new. Which could also potentially bring more money into the schools, helping them in the long run.
ReplyDeleteI completely agree with your stand on things. Why should my parents pay taxes for years and years to help fund schools that I'm not going to go to? Then, the cost of college is elevated if I decide I want to go out of state? Seems crazy. I personally have always been a person who has wanted to go out of state, but to see the price difference almost makes me think it's not worth it. It is unfortunate that this might affect so many people's decisions in where they decide to go to college, instead of a school that would be better fit for them.
ReplyDeleteI agree completely with you. It's all the same country, so why wouldn't I be allowed to attend a school from a different state? Would you suggest a compromise where an out-of-state student pays the taxes of their schools state instead of the state where they have citizenship? I don't know how taxes work but if they could be shifted to better suit the person would that work? Would the price of out-of-state tuition decrease if the student becomes an official citizen of that state? And how do you change state citizenship? I think it would be interesting to find the loopholes in our current system. And if there are none, then it would make more sense to change that tuition difference. All in all, interesting and relevant topic!
ReplyDeleteThe price gap between people that pay in-state tuition and out of state tuition never truly struck me before reading this blog. I can understand why it would be difficult for people that strive to leave the state they live in to attend another school but have the struggle of paying the extra thousands of dollars that others don't have to worry about. A scenario that you had mentioned was when the college near you does not offer your degree and you feel forced to pay the outrageous out of school tuition which can be rude awakening for some.
ReplyDeleteThe way you put this information is very understandable (the graph was very helpful), many of us never have to cross this issue ever in our lives but while this topic is very relevant in your life right now it's easy to see how stressful it can be. Not quite the same thing but some people have to pay those same extreme amounts for colleges while still staying in state.
ReplyDeleteI completely agree with your entire paper. I have been looking at out of state schools and have realized that I will be hundreds of thousands of dollars in debt. For me I feel like I shouldn't have to settle for a college, because I know that once I'm out of college I am most likely going to settle in that area. Although for me I've always had a dream of going to an out of state school to gain new experiences. However, going to UW-Madison for 4 years or more can cause many to be in debt over $126,000. Either way college is a lose lose situation when it comes to money. This is why college is a highly controversial topic, because some feel upcoming generations can get by without a college education and others feel it is vital to have a higher education. Right now I don't know were I stand. All I know is that I'm looking for new experiences.
ReplyDeleteI agree that out of state tuition should be the same as in state tuition because out of state tuition causes college students to have even more debt. The university that I’ve been accepted into is called Michigan Technological University. For people who live in Michigan, the cost of attending the school is $30,542. For those who live out of state, the cost of attending is $49,778. That means there is almost a $20,000 cost difference. As you said in your blog post, the only reason we have to pay out of state tuition is because we don’t pay taxes in that state, and in state tuition is seen as a reward for the residents of that state for paying taxes and supporting that college. Personally, I think it is unfair that just because we don’t live in that state, we have to pay a higher cost. It’s not our fault we don’t live in that state and pay taxes. As high school students, we cannot decide what state we live in, nor should we settle for a college simply because out of state tuition is too much. So, I agree that out of state tuition should be the same as in state tuition.
ReplyDeleteI really found the way that In-state tuition costs and out of state tuition costs differences were explained in this article. It made me think about the actual costs of tuition themselves, what I would be paying for in college, as well as what my future options may be. I found it interesting how the out of state costs for attending college were almost triple the In-state colleges and how much taxes really affect those costs.
ReplyDeleteI also agree with your argument because I think it's completely ridiculous how expensive tuition is for out-of-state residents. I don't think it's fair to aspiring college students to settle based on their financial situation. Prior to reading your post, I really had no idea the reasoning behind the difference between in-state and out-of-state tuition but now I understand that you are compensating for the taxes that you don't pay to fund the out of state school. Unfortunately for many people who can't afford the out-of state tuition, it's the cost of the school that often turns future applicants away. Although I understand the reasoning behind the heightened cost, I don't think it's beneficial to the school or the students as quality schools are missing out on those who are interested but can't afford the cost and students are having to settle for something that they don't want. Again, I agree with argument because it's not like we aren't paying taxes at all, we just aren't paying for taxes that fund that the out of state school.
ReplyDeleteI completely agree with you claim and reasoning behind it. Although i'm not looking to go out of state, a lot of people do and out-of-state tuition is ridiculously high compared to in state. Your statement of you specifically not paying for taxes that goes to that specific university means you can't get a reasonably priced education even though you still pay taxes that goes to a different college definitely stood out. It's not fair that students who live in states that don't have colleges specific to their majors are forced to pay out-of-state tuition because they want the best education for them possible. Yes, we all pay taxes whether it goes to the college we want to attend or not but because you don't live in that state your tuition is automatically $19,000 more than someone who does is astonishing. Although I don't think much will change to this, I found this very interesting.
ReplyDeleteThe way you organized you blog was very easy to read and understand. I like how you included a graph to show more of what you are trying to make a point out of. And I 100% agree with the fact that its unfair that out of state kids have to pay more then instate kids for the same schooling!
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