Many prospective students look at out-of-state universities to open up hundreds of options, but the downside is that they usually come with a higher price tag. According to College Board, Average tuition and fees The 2024-2025 grade was $19,710 more expensive for out-of-state schools than in-state schools.
If you are considering going to a school outside your home state, it is important to explore all the ways you can help save tuition by receiving financial aid.
7 Tips for Paying Out of State Tuition Fee
If you are planning to attend school out of state, you can save money by:
Tip #1: Use Federal Student Aid
Federal aid is often the best place to start. This includes grants, work studies and loans based on Free Application for Federal Student Aid (FAFSA). After filling out the FAFSA and being accepted into the university, you Financial Aid Award Letter Details of the supplementary auxiliary package.
Need the necessary federal assistance
Federal Student Loans
These loans come with fixed interest rates and flexible repayment options. They are generally more advantageous than private loans.
| Loan type | borrower | Interest rates (2025-2026) |
|---|---|---|
| Direct subsidies | Undergraduate students | 6.39% |
| No direct assistance | Undergraduate and Alumni |
Undergraduate students: 6.39% Graduates: 7.94% |
| Direct Plus | Parents and graduates | 8.94% |
Borrow only what you need – Federal government loans have annual borrowing restrictions.
Once you take out multiple types of loans, you can combine them under one loan using a direct integrated loan. This will give you one interest per month.
Tip #2: Take advantage of local tuition fee interactions
Tuition reciprocal agreements, or tuition exchange programs, allow students to attend out-of-state universities within their local area without paying out-of-state tuition fees. Eligibility requirements vary from contracts to contracts. Some programs require a specific major or a specific GPA, which may limit spots, so those who want to apply should do so early.
The main programs are as follows:
| program | situation | detail |
| Academic Common Market | Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia | Discount tuition fees for majors not offered in your hometown. |
| Midwest Student Exchange Program | Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Wisconsin | Tuition fees concluded with 150% of public school in-state fees |
| New England Regional Student Program | Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont | Discounts for majors that are not available in your hometown. |
| Regional Contract Program | Arkansas, Delaware, Georgia, Kentucky, Louisiana, Mississippi, South Carolina | Tuition fees concluded at 150% of the in-state rate. |
| Western faculty exchange | Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, North Mariana Islands | Discounted tuition fees for health-related degrees in private/public schools. |
To see if your area offers tuition reciprocal agreements, National Association of Student Financial Aid Administrators (NASFAA) Resource Page Or contact you State Educational Institutions.
Check with your school’s Financial Aid Bureau to see if tuition reciprocity is available.
Tip #3: Find out more about state residences
If you are planning to move permanently to a state where you attend university, you may be able to get a place of residence. In-state tuition fees.
Dependent students are usually presumed to have the same residence as their parents or legal guardians. To override out-of-state presumption, students must provide clear evidence that school status is established as permanent residence.
You can include proofs:
- State driver’s license (at least 12 months, no out-of-state license)
- State income tax return (submitted independently)
- Lease or proof of property ownership
- Voter registration, bank account, utility bill or insurance record
Otherwise, dependent students generally must have at least one parent who was a state resident at least 12 months before the student can enter a university in that state, but the requirements this time vary from state to state.
Independent students must generally be a state resident or have a spouse who is resident for at least one year before class begins. These timelines and additional age requirements vary by state.
Tip #4: Ask about institutional scholarships and tuition exemptions
Even if you are not eligible for in-state tuition, visiting the Financial Aid Department to learn about opportunities for scholarships and tuition waiver, you may be able to reduce your out-of-state tuition fees.
Here are three common things:
Bankrate Loans editor Pippin Wilbers qualified for the Merit Scholarship, which made attending Indiana schools much more affordable than his hometown in Missouri.
Tip #5: Apply for an external scholarship
Outside of your school’s scholarship opportunities, you can find hundreds of niche scholarships that may match your experiences and interests. Private scholarships may not provide as much funding as institutional scholarships, but stacking multiple scholarships can significantly reduce your costs.
I use A Scholarship Search Engine It will help you find scholarships in the wheelhouse. These search engines allow you to filter results, bookmark opportunities, and track application status.
Tip #6: Use private student loans
Private student loans can fill the gap if federal aid and scholarships don’t fully cover your out-of-state tuition fees.
Important things to know:
- Provided by a bank, credit union or private lender
- Credit checks are required – students often need them Cosign Because they usually don’t have a credit history.
- Terms, interest rates and repayment amounts vary from lender to lender, but are usually higher than federal loans.
in front I’ll give you a student loancalculate what you need to borrow for schools in the state and for schools in the state. If you borrow tens of thousands of dollars for schools outside of state and schools in the state save you money, chasing that debt after you for more than a decade may not be worth it.
Student Loan Calculator
Want to know exactly how much you spend on schools in the state and out of state? Use Bankrate’s student loan calculator to find out.
Calculate now
Tip #7: Explore military service and other exceptions
Some students may qualify for special tuition exemptions, including:
- Schools without loans: Some elite institutions provide financial aid without loans, especially for low-income students.
- GI Bill benefits: Veterans and active duty military have access to educational benefits, including tuition support and scholarships.
- Military Familyteachers and first counterparts: Some states offer tuition breaks for civil or military children.
Conclusion
Looking at out-of-state universities, you can expand your options, from specialized programs to unique course offerings. These schools usually come with a higher price tag, but there are ways to reduce costs. Explore all available funding options and contact your school’s Financial Aid Office to learn which scholarships and aid programs are available.
