<p>DriftwoodParty, I agree with most of what you say, but I am not sure I see how UVa is "substantially" cheaper than Michigan for OOS students. UVa is roughly $4,000 cheaper than Michigan. I would not call that substantial. UNC is indeed "substantially" cheaper than Michigan, but not UVa.</p>
<p>At any rate, Michigan is definitely not generous when it comes to financial aid offered to OOS students. That is one of its few weaknesses. unfortunately, that is not likely to change for several reasons. </p>
<p>1) As one of the top 2 or 3 public universities in the nation, it will always attract OOS and international students who are willing to pay full (or close to full) tuition.</p>
<p>2) Michigan is already offering highly discounted rates to in-state students, who make up 65% of the undergraduate student population. Furthermore, as a public university, Michigan is expected to provide 100% of demonstrated need to those in-state students. As such, Michigan cannot afford being too generous to all OOS students.</p>
<p>3) Although Michigan's endowment stood at a whopping $7.6 billion (6th largest in the land), its endowment on a per-student basis is roughly $200,000 (23rd best among research universities). That's excellent considering that Michigan is a public university and receives additional money from the state. However, that is not quite enough to provide students with a generous financial aid program that would meet 100% of all demonstrated need. Besides, with the financial meltdown, I would be surprised if Michigan's endowment were greater than $5 billion come July of 2009. Only 5-7 universities are going to have endowments over $5 billion once the dust has settled. This can only mean MAJOR cuts in financial aid budgets over the coming years. </p>
<p>As a side note, I urge all of us to remember that we have limited visibility. We only see what affects us and what others tell us. Universities often claim that they meet 100% of "demonstrated" need. The problem with the word "demonstrated" is that it is open to interpretation. A family may require $30,000/year to afford a particular university by that university may acknowledge only $18,000 of that. If the university provides that family with $18,000, it will claim to have met 100% of that student's demonstrated need. Furthermore, some universities will reject qualified students simply because they cannot afford the school and load their admitted class with students who can afford paying the full cost or near full cost. Again, such schools will be able to claim that they have met 100% of demonstrate need.</p>