How is out-of-state tuition calculated?

Not looking for specifics, just on what terms?

A lot of people say that colleges seek out-of-state students because they pay higher tuition, but if the tuition is higher insofar as in-state students’ tuition is subsidized in part by the state, as a lot of people also say, how does it make sense that they would earn any more from out-of-state students?

A lot of people say=the conventional wisdom is

If the state is paying $30k to subsidize an in state student and less, if any, on an out of state - there’s your answer.

State and federal governments often fund public schools. In many cases they are cutting back on funding.

So colleges need more revenue. They find it at kids willing to pay more.

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Just because people say it, doesn’t mean it’s true.

Yes, in-state tuition is lower at public universities. Yes, OOS tuition is therefore higher. But many public universities, whether by legislation or by policy, cap the OOS percentage. So there’s only so much additional revenue that can be received in this manner

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Different states and state universities may have different criteria and motivations for how they set their out-of-state tuition.

This is some old data, but back when I was an undergraduate, in state students paid about 35% and out of state paid 105% of the cost of instruction.