<p>I think you are wrong on two counts. UM does need the OOS tuition funds to balance the books and make the operation viable. The amount paid by OOS students far exceeds the marginal cost of these students and is a "profit" center for the school. OOS students subsidize the instate students. Many similar schools have admitted this out loud. UM is not any different than UVa, Wisconsin, Colorado ad several other schools.</p>
<p>Don't confuse revenue with profit. On what basis do you say that Nonresidents are paying more in tuition than their education costs?</p>
<p>One thing barron is right about, tuition = revenue. That's true of ALL students' tuition, not just that of out of state students. The posters who write as if OOS tuition "revenue" represents some sort of unethical fleecing aren't informed about higher education. Tuition is revenue, just like state approps are revenue, just like IDR is revenue, just like interest on endownment is revenue. It's an accounting term, it's not pejorative. Yes, out of state students provide more revenue. That's not the same as saying they provide profit or surplus.</p>
<p>My basis is direct statements from other similar schools. I am not implying there is anything wrong with this policy. Actually it's more a matter of basic economics--charging what the market will accept.</p>
<p>Ah Michigan. Love the school; love the campus; love Ann Arbor. I've had many friends and relatives over the years go through UMich. Virtually every one of them had a wonderful experience. In my opinion, nobody does huge better than Michigan. But, that presupposes a student either wants huge or doesn't mind it.</p>
<p>Part of this discussion eludes me because UMich has been fairly straight-forward and in any case very consistent about the whole OOS financial aid policy for years. If you're a Michigan resident, admissions is easier and financial aid is ballpark with many, many institutions. If you're OOS, however, admissions is somewhat challenging and financial aid is miserable. But it's been this way for years. It is what it is. You know (or should know) this going in.</p>
<p>Here in the Chicago metro area, many of the very high achieving kids use UMich in a very specific way in their college search:</p>
<p><em>1</em> Apply early in their rolling admissions cycle and reap the benefit that comes with having an admission to an outstanding school under your belt.</p>
<p><em>2</em> If finances are no problem, then relax -- you've got a wonderful and viable college option to bank on while you await word from your other schools.</p>
<p><em>3</em> If finances are any sort of any issue, however, then recognize that UMich will likely be a worse financial alternative than any other school on your list -- obviously your own state schools, but also the wealthier private schools on your list because these schools will meaningfully consider you for financial assistance while UMich will not. That's just the way it is folks.</p>
<p><em>4</em> The one exception to the no financing for OOS students is that UMich has become somewhat aggressive in offering many merit scholarships in the $15K to applicants they select directly out of the general applicant pool (no merit scholarship applications necessary). Whether it is buying top grades and scores for reporting purposes, or some other rationale, UMich clearly tries to entice certain high achieving kids to attend (I personally know 3 kids who received this special treatment from UMich). Consequently, there are many kids who apply to UMich simply to enter this "lottery." If they receive merit, then UMich becomes financially comparable to others on their list and they decide on which school to attend on largely non-financial reasons; if they don't receive merit assistance, then UMich becomes the first "accepted" school to drop from their list.</p>
<p>You'll hear no value judgment from me about this. For talented OOS students, UMich occupies a very specific niche. To me, problems arise only when OOS applicants look at UMich as something which it most clearly is not.</p>