<p>So, as well all know, the University of Alabama gives big scholarship money to NMSF, including out of state students. Now, that certainly has paid a big role in recruiting smart out of state students for UA.</p>
<p>But what do Alabama taxpayers get out of this scholarship program?</p>
<p>Do a number of those students end up staying in the state and contributing to the state’s economy? If they stay, do they take jobs from Alabama residents? Or do they leave the state and so don’t contribute much to the state’s economy?</p>
<p>I ask this because it seems like such a great deal for the out of state students, but I wondered what the people of Alabama get out of it. Also, my state’s flagship is not that generous – and I wonder if it should be!</p>
<p>@momfromme, I know other posters will answer your questions more directly, but this is an article I came across a year ago when I was asking a lot of the same questions you are, and I found it really helpful in explaining the long-range planning process of UA’s leadership: </p>
<p><a href=“http://higheredwatch.newamerica.net/blogposts/2013/playing_the_merit_aid_game_at_public_universities-83896”>http://higheredwatch.newamerica.net/blogposts/2013/playing_the_merit_aid_game_at_public_universities-83896</a></p>
<p>It’s a difficult topic, but I think, in the long run, as UA raises its academic profile, the state and its residents will reap the benefits.</p>
<p>I’m not sure what proportion of OOS students remain in Alabama after graduation and if that number exceeds the number of in-state students who leave the state after graduation.</p>
<p>It’s important to note that the merit scholarships are not taxpayer funded. The money comes from private donations and investments. The state of Alabama might give a very small amount of funding for in-state students, but total state funding is has stayed relatively constant even with enrollment increases.</p>
<p>In reality, OOS UA students are paying relatively high tax rates in return for not using many state or local services. UA has its own police department (which is not likely to be taxpayer funded) and students are paying sales, alcohol, tobacco, and gasoline taxes. Students are also be subject to income taxes and property taxes depending on if the work in Alabama or live off campus (even if renting, someone is paying property taxes). Unlike other states which have sales tax exemptions for many on-campus purchases, Alabama does not have such exemptions. </p>
<p>In addition to the scholarships not being funded by taxpayer dollars, students, parents and other visitors support numerous restaurants, bars, shops and other business establishments. This is turn promotes growth and supplies jobs to the locals. </p>
<p>One answer would be that the UA officials don’t care whether OOS students remain in-state. In fact, it could be better for them to return home. When I told people my DD was going to UA, one of the neighbors jokingly asked if the dorms were single-wide or double-wide. It was a good-natured joke that played to a stereotype that former President Witt knew would take years to overcome and would best be done with “normal” UA grads fanning out across the country busting the image of Alabama as a hick, in-bred state, weighed down with segregationist images leftover from the 60s. Every friendly “Roll Tide” said by a UA grad or game-day flag flown on an OOS front porch spreads the positive word. Like every state, Alabama has its share of poor and ignorant, but also has its share of progressive, industrious, well-educated people. The dollars invested now in scholarships now will be paid back later when those grads are decision-makers who keep the state on the list of possible new locations for a factory or branch office or come back to the state to live, retire or vacation.</p>
<p>I think increasing UA’s academic profile is a more immediate benefit. For current in-state students, having a talented cohort of OOS students has steadily raised the bar on what the in-state high schools need to offer to keep their students competitive in a larger applicant pool.</p>
<p>For one thing, they upgrade their flag ship university. One of the reasons why certain schools are considered “better” than others is because of the calibre of students that are there. It’s a reason most given why we want our top students to at top school, to be with like kids. It’s why schools like UVA. the UCs, UMich have the reps they do. As I noted in another thread, I’ve seen schools bring up their stats, their reps, their selectivity with merit money, honors colleges and upgrades to the point that in time, as much money is not needed to attract such students. </p>
<p>GCBMIB I think hit the nail on the head. The only thing I might add is that UA is looking towards the future and they realize that the only way to attract more full pay OOS is to give away some money now to up their academic profile. At some point UA could become a highly sought after school. They have been steadily increasing their rankings with their OOS scholarship program so it seems to be working. </p>
<p>For the past four years, we’ve not only contributed to the local and surrounding economy by parents visits, but also, our son worked in Alabama for two summers, and has paid income tax on those earnings. Sure, we’re one family, but I’m sure we’re not the only ones whose kids have done this. </p>
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<p>You seem to be assuming that the AL taxpayers are funding these scholarships…they are not. So, really the taxpayers dont need to get anything out of this. however, they do. </p>
<p>The state has a small population, yet it is home to Cummings Research Park, Mercedes Benz plant, and other high tech companies. the state cant provide enough high tech employees, so it helps the state for bama to produce more.</p>
<p>The state gets back $3 in taxes for every $1 it contributes to bama.</p>
<p>Another thing to note is that often the “per student” state funding is mentioned as going down. I would like to see what those numbers really are when looking at only instate students, since OOS students arent really being subsidized by taxpayers. </p>
<p>Half the school is from OOS, and most of these kids are not receiving the big merit. When 60% of frosh are OOS, and about 3700+ are OOS, you can easily estimate that only about 1500 or less have full- 2/3-half tuition scholarships. (typically only about 500 total INSTATE and OOS have the Presidential)</p>
<p>Great info Mom2collegekids! Lots of misinformation out there. Too often, I have read comments on AL.com message boards critical of UA for “spending so much money on OOS” to the supposed detriment of in state students. I do wonder however, what effect UA’s dramatic growth has had on the state funding for other Alabama schools. If UA is taking an increasing part of the pie, wouldn’t other schools be getting less? I think Alabama has far too many colleges, so it doesn’t bother me, but I am kind of surprised that the folks at Auburn haven’t made more of a stink about it. I think the engineering focus at Auburn has shielded it somewhat from decreases in share of funding (funding per student is greater when the student studies Engineering), but with UA now enrolling just as many, if not more Engineering freshman, surely they will start to notice the pie getting smaller for them. </p>
<p>I had a neighbour whose daughter was touring Auburn recently (English/Journalism major), for some reason…and they came back believing that Auburn’s enrollment is shrinking and might even become worrisome in the ‘soft’ degree areas. I asked why they didn’t tour UA while they were down there and they looked at me blankly.</p>
<p>Simplest answer: If the University of Alabama is highly respected then the entire state is respected.</p>
<p>As “GCBMIB” pointed out, the state of Alabama has suffered an image problem for at least 50 years. Developing a world class flagship university can go a long way to correcting that image. Even as a Auburn graduate, this is important to me. I live in Ohio now, and have lived all over the country. You would be surprised at the jokes I hear, and the low opinion most people have of the state of Alabama.</p>
<p>:| </p>
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Bless their hearts, those Auburn people tend to do that all the time! 
RTR!</p>
<p>Auburn has a cap on enrollment of 25,000 for undergrad and grad and has for years. They have policy to keep the enrollment at a level that will maintain quality education and not overcrowd classes and not have the proper facilities for the majors… They are right at 25,000 for 2013 so no they are not losing anything - maybe turning away applicants but not losing any share. I’m only an AU parent but will relay that my son said that AU students really don’t give UA much of a thought about anything except in November. </p>
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<p>hardly. auburn accepts nearly everyone who applies …with a 70% acceptance rate. </p>
<p>Actually, Auburn’s acceptance rate is even higher than that last I checked, however, in fairness, I think it gets fewer lower scoring students applying for acceptance.</p>
<p>Okay, now that we have this micro-Iron Bowl underway, here are the stats for 2012:</p>
<p>'Bama SAT middle 50%: 1490 to 1870
Auburn SAT middle 50%: 1600 to 1890</p>
<p>'Bama ACT middle 50%: 22 to 30
Auburn ACT middle 50%: 24 to 30</p>
<p>'Bama acceptance rate: 53%
Auburn acceptance rate: 77%</p>
<p>So, although 'Bama has a much lower acceptance rate it also seems to accept a higher proportion of students with mediocre standardized test scores. Both schools have about the same proportion of students with high test scores.</p>
<p>:-SS </p>
<p>The big difference is yield - Auburn’s is 36% and Bama’s is 64%. Clearly the applicant pool for Auburn is higher stats on average, to end up with better enrolled stats at higher admit rates. Lots of in-state students with little chance of admission must apply to Bama just because it’s Bama.</p>
<p>The University of Alabama has a strong commitment to accepting students from Alabama’s high schools which may result in lower overall ACT/SAT scores. I have heard the former UA President speak to the fact that the university needs to reach out to not only the A Students but also to the the B and C students because these students can and do achieve success at UA.</p>