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<p>This is just a factually false premise. I’ve explained it before but since it obviously didn’t register with Goldenboy, I’ll explain it again.</p>
<p>At the end of the day, students (and their families) don’t care about sticker price, they care about cost of attending net of FA.</p>
<p>You can divide Michigan’s class into thirds: 1/3 OOS, 1/3 in-state receiving need-based FA, and 1/3 in-state full-pay. With the 1/3 OOS, Michigan is generally at a cost disadvantage, because for this group it can’t match elite privates that meet 100% of need (or for that matter, in-state tuition at the applicant’s own in-state flagship). So except at the very high end of EFC (> Michigan’s OOS COA, which is generally about $5K or so less than that of elite privates), Michigan is generally at a cost disadvantage relative to the elite privates, and always relative to the applicant’s own state flagship. Yet despite this steep uphill climb, Michigan manages to fill 1/3 of its class with OOS students. Pretty impressive, I’d say.</p>
<p>Of the 2/3 of the class who are in-state, half (actually 48%, but close enough) receive need-based FA, and half don’t The half that do (= 1/3 of the total class) have EFC < Michigan’s in-state COA (about $25K). But these kids will pay the same to attend Michigan as they’d pay at any private school that meets 100% of need: they’ll pay their EFC, not a dime more, not a dime less. So for this group, Michigan’s low sticker price on tuition is irrelevant, because they’re going to be paying less than that anyway; FA will make up the rest, just as at the private school meeting 100% of need. No subsidy advantage there. Michigan might even be the higher-cost option for some in this group depending on what’s in the FA package (e.g., all grants v. grants/loans/work-study).</p>
<p>It’s only with the third group, in-state students with EFC > Michigan’s in-state COA, that Michigan offers a cost advantage relative to elite privates. For some in this group, it’s a large cost advantage. For others (those in, say, the $25K-$30K EFC range) it’s small, and might even be offset by, e.g., a merit award at another school. For that matter, Michigan State tries to pick off students in this group by offering a slightly lower COA (about $3K less) and enticing merit awards for kids with high stats. (Merit money is a magnet for high-EFC kids because they’ll get little or no need-based FA; for high-need kids, merit money usually just goes to offset need-based aid, so it may not change their financial position). There are other, even lower-cost in-state competitors, but Michigan doesn’t lose so many of the kids it wants to them.</p>
<p>So with 1/3 of the class (OOS) Michigan’s at a cost disadvantage, with another 1/3 (in-state low-EFC) there’s no advantage either way, and with another third of the class (in-state high-EFC) Michigan can offer a cost advantage relative to high-priced privates, but not relative to in-state competitors. That seems to me like it adds up to no net cost advantage when you consider the full student body.</p>
<p>As usual, GoldenBoy is just wallowing in his own unwarranted assumptions.</p>