Most people understand the conventional wisdom that state schools are often more affordable than attending private universities. Indeed, state schools are usually subsidized by the government, and tuition costs are typically lower at numerous state schools than many private colleges. However, state schools are not always cheaper, and students wishing to save money on tuition costs should not disregard private universities, since these colleges can actually help students lower their educational expenses.
One reason why state schools are not always cheaper than private colleges is since state schools typically have separate tuition costs for in-state students and out-of-state students. Usually, in-state tuition costs at most state schools are lower than private universities. However, out-of-state students typically pay much more tuition costs and fees than in-state students, and this can make the tuition expenses for out-of-state students comparable to many private colleges. It is true that many state schools allow students to claim that they are in-state residents after a few years of living as a student in a state. However, out-of-state students still need to pay higher tuition costs for their first few years of college, and this can be a substantial amount of money.
One of my brothers (not the one I convinced to write a bunch of guest articles for this website!) was an out-of-state student at a state school, and this greatly impacted his bottom line. After doing some research, my brother decided to attend a state school in Florida even though my family is from New Jersey. As a result, my brother was forced to pay higher tuition costs because he was an out-of-state student.
Eventually, my brother was able to claim that he was an in-state student, since he lived and worked in Florida while attending a state school in the Sunshine State. As a result, his tuition costs for his last two years in college were significantly lower than the first two years. Nevertheless, my brother had already borrowed a massive amount of money to pay for the higher tuition costs of his first few years of college. In addition, interest accrued on this sum for the rest of his time in college. His example shows how starting school as an out-of-state resident can have a major impact on your educational costs.
Another reason why state schools are not always cheaper is due to financial aid programs. As previously mentioned on this website in several prior articles, need-based financial aid can be a valuable resource for students wishing to lower their educational costs. Although only a fraction of students will qualify for need-based financial aid, this assistance can pay for part or all of the costs associated with obtaining a degree.
Many state schools do not have robust need-based financial aid programs. This is due to the fact that tuition is already discounted at these schools for in-state students. In addition, state schools often lack the endowments necessary to establish such programs.
However, many private colleges have robust need-based financial aid programs. Indeed, tuition is typically higher at many such schools so that those who can afford to pay full freight pay into a system that provides assistance to those of limited financial means. The effect of these need-based financial aid programs can easily cancel out the benefit of discounted tuition at state schools.
For instance, my brother (the one who has written a number of articles for this website) and myself attended private colleges. We were both awarded generous need-based financial aid that covered most of the cost of earning our undergraduate degrees. Indeed, both of us graduated college with significantly less debt than our other brother who attended a state school. This was despite the fact that our other brother worked a full-time job in college to pay for his educational costs. In any case, the availability of financial aid at private colleges is another reason why state schools are not always cheaper.
In addition, state schools are not always cheaper because they typically offer less scholarships than private colleges. Many states schools have limited scholarship budgets, and only allocate scholarship funds to in-state residents. This makes sense, since state schools primarily serve in-state residents, and tuition is already cheaper for in-state residents than many other schools.
However, private schools often have larger scholarship funds than many states schools. Indeed, private colleges are not accountable to state authorities in how they allocate assets, and can dedicate resources to a number of purposes. Attracting high quality talent through scholarship offers is an objective that is typically pursued by private colleges more than state schools.
Indeed, even though I attended a private school, I was awarded merit aid that made attending this university much cheaper than enrolling in a state school. In addition, my brother who also attended a private college and received substantial merit aid. When you consider scholarships, state schools are not always cheaper, since merit aid can dramatically decrease the amount of money a student needs to borrow to earn a degree.
All told, state schools are not always cheaper than private universities. Indeed, many private universities offer need-based financial aid and scholarships to make up for the fact that private universities often have higher tuition costs. In addition, state schools often have higher tuition charges for out-of-state students. As a result, if students are eligible for merit or need-based financial aid, or primarily wish to attend state schools as an out-of-state student, they should seriously consider attending private colleges instead.