University of Michigan charges highest out-of-state tuition of U.S. public colleges
It goes without saying that out-of-state college students are paying more in tuition per year than students choosing to attend school in their home state. But according to a recent news report, out-of-state University of Michigan students are not just paying more — they're paying the most.
U.S. News and World Report analyzed the non-resident tuition at public colleges and found that in 2012-13 U-M students paid the highest rate, at $39,109 of any public research university in the nation. That figure doesn't include room and board, which is an inevitability for out-of-state students.
In June the U-M Board of Regents voted to increase non-resident tuition 3.2 percent, bringing 2013-14 tuition to $40,492 for underclassmen and $43,230 for upperclassmen. Room and board costs $9,996.
University of Virginia placed as the second most expensive public school for non-residents, costing $38,018 in 2012-13; and University of California at Davis came in third, costing $36,755 for non-residents.
At U-M, regents have said they want to leverage out-of-state tuition as a way to keep resident costs low. Yet the high cost of non-resident tuition means U-M's out-of-state student population is less economically diverse than its in-state population. However, U-M-comissioned studies have shown there's a large, qualified base of non-residents willing to pay U-M's high sticker price.
Read the full U.S. News report.
Kellie Woodhouse covers higher education for AnnArbor.com. Reach her at kelliewoodhouse@annarbor.com or 734-623-4602 and follow her on twitter.
Comments
Seasoned Cit
Fri, Jul 12, 2013 : 3:28 p.m.
Just another great example of income redistribution. Those that can afford the fees with no financial aid are welcomed to pay..and other UM resources are used to assist those without the ability to pay the fees. How about an in-depth story on what the real cost of financial aid/insuring diversity is at the UM?
blue85
Fri, Jul 12, 2013 : 6:38 p.m.
"Just another great example of income redistribution. Those that can afford the fees with no financial aid are welcomed to pay.." I assume that you are noting that a preference for in-state students, despite the falling subsidy, and the harvesting of out of state dollars tilts the field, in each case, toward in-state students...and that you want to right this wrong by eliminating seats for in-state students? "and other UM resources are used to assist those without the ability to pay the fees. How about an in-depth story on what the real cost of financial aid/insuring diversity is at the UM?" I'm assuming that you are arguing for elimination of financial aid for in-state students and are therefore making an argument for no-in-state students, or at least a reduction thereof?
Crono
Fri, Jul 12, 2013 : 3:02 p.m.
Glad to be an Eastern Eagle! Our tuition is about half of UM's.
Seasoned Cit
Fri, Jul 12, 2013 : 1:44 p.m.
I heard they are waiting to see how successful the Athletic Dept's floating ticket pricing system will be, and if it brings in the big bucks, they will try that with out of state tuition as well.
A2comments
Fri, Jul 12, 2013 : 11:47 a.m.
suspect that it was the highest last year too. This isn't news, merely US News writing multiple articles touting the release of their latest study. They slice it lots of ways, then write articles. "That figure doesn't include room and board, which is an inevitability for out-of-state students.". Ah, same for in-state students. The number of students that live at home and go to U of M is very, very small. Finally, there are lots of fees, higher tuition for many schools including Business, Engineering, and others, higher tuition for juniors and above...
mphill
Fri, Jul 12, 2013 : 4:08 a.m.
who is asking the question....how many places are these high-paying out-of-state students taking away from equally qualified (but lower paying) in-state students. This Michigan "public university" has turned into a destination for students from out-of-state (and out-of-the-country) who can pay a higher rate for quality education. And it's turning away qualified in-state students of merit!
blue85
Fri, Jul 12, 2013 : 6:34 p.m.
"who is asking the question....how many places are these high-paying out-of-state students taking away from equally qualified (but lower paying) in-state students. " As noted above, 30% of the students accepted by UM say no. "...who can pay a higher rate for quality education. And it's turning away qualified in-state students of merit!" You have this upside down: the out of state margin helps UM to subsidize in-state students subsequent to state cuts in the in-state subsidy. Qualified students aren't turned away: 1) some say no , as noted (better options or even cheaper options than in-state); 2) the 3.9 median GPA has to tell you that "qualified" requires a stringent application of the word; as does the Ivy League ACT composite for the top 2/3 of the class; 3) if 2 students are equally qualified, there are a host of tie-breakers: geography, intended area of study (versus instructional capacity), athelete, legacy, and yes...drum roll please...race/ethnicity.
skigrl50
Fri, Jul 12, 2013 : midnight
In my opinion, the out of state tuition is in line with high quality private universities and it should be. Out of state students could attend school in their home state if they want a bargain. We really shouldn't feel the need to subsidize tuition for out of state residents.
spaghettimonsters
Fri, Jul 12, 2013 : 3:05 a.m.
Who's saying you should "subsidize" it? There are simply many ridiculous things being done on campus that are pure wastes of money: ritzy dorms, abhorrently excessive pay for an abhorrently excessive number of administrators, a woefully indulgent sports program, etc.
Retiree Newcomer
Thu, Jul 11, 2013 : 11:08 p.m.
This is not something to be proud of. Michiganders should be ashamed that it is among the lowest tier of state governments in its state spending for higher education. Michigan spends more for its prison system than it does in support of its public colleges and universities. State spending on higher ed has been slashed since the recession began in 2008. The state is falling behind in educating for the 21st century economy. How about a followup story that quantifies the amount of financial assistance given by UM - average award to in-state students and out-of-state students -- median figures too. Is UM making up for its astronomically high tuition by making larger grants to assure an economically diverse student body? Let's find out!
blue85
Fri, Jul 12, 2013 : 6:28 p.m.
UM claims that for a family under $80,000/year, it is roughly the same cost today as 10 years ago. Those numbers are rough and from memory but may be found on the UM web site.
Greg
Thu, Jul 11, 2013 : 9:25 p.m.
Last time I checked the MI University system was supposed to be primarily for state residents and the progress of the state of MI. This attitude that its priority should be diversity of others states students is way out to lunch.
blue85
Fri, Jul 12, 2013 : 6:27 p.m.
"Last time I checked the MI University system was supposed to be primarily for state residents and the progress of the state of MI. " Yes, your perspective would be completely germane...in the 1850s. In the 1960s, the state provided over $1.3Bn/year in funding to UM. After cutting many billions (yes, billions) out of that funding over 50 years, the theory you espouse can only be called "quaint".
YpsiGirl4Ever
Thu, Jul 11, 2013 : 8:36 p.m.
The price is too darn high to attend the U of M.
blue85
Fri, Jul 12, 2013 : 6:25 p.m.
A cynic knows the price of everything, and the value of nothing. The price is high, but is there a comparative benefit: 1) the benefit of superior instruction at the undergraduate level; 2) an option, subject to earning high grades at the undergraduate level, of attending an elite graduate school (at UM or elsewhere). Many of UM's graduate programs, something like 95 in total (4th or so in country behind Berkeley, Stanford and Harvard), rank in the top 10 nationally. Excellence at UM means preference at the graduate level for those programs. Other studies show that UM is a top 5 or top 10 feeder to elite programs at other schools.
SemperFi
Thu, Jul 11, 2013 : 8:29 p.m.
Good! The finest public institution of higher learning should charge the most for out-of-state students.
BP312
Fri, Jul 12, 2013 : 6:14 a.m.
I sense a little bias here, Semper. UofM is in the top 10 of the best public institutions, but definitely not number 1.
spaghettimonsters
Fri, Jul 12, 2013 : 2:46 a.m.
On what list is UM the "finest public institution of higher learning"?
JRW
Thu, Jul 11, 2013 : 8:12 p.m.
"At U-M, regents have said they want to leverage out-of-state tuition as a way to keep resident costs low." What does this statement mean? That the Regents is fine with very high out of state tuition to "leverage" (or reduce) the in-state tuition? Bad idea. Why should out of staters pay excessively more than instaters, when the state only contributes about 10-15% of the overall budget, and that proportion is shrinking? It's not like UM is 60% funded by Mi tax dollars and therefore the instate tuition should be much lower than out of state. UM is only considered a "state assisted" school, not a "state school." Big difference. UM is on the brink of becoming self funded and therefore private. This current out of state tuition takes advantage of out of staters. Worse yet, after residing in MI for a year and paying exorbitant sums for tuition, the students have to continue to pay the out of state tuition through all their years of study, unlike other universities and colleges that allow students to qualify for "residency" after a year and pay the lower instate tuition after the first year. Not so at UM.
blue85
Fri, Jul 12, 2013 : 6:21 p.m.
"This current out of state tuition takes advantage of out of staters. " Not true: 1) UM has a cost of doing business; 2) the state, in consideration of taxes paid and what not, reduces the charge to in-state students and charges the "true" price to out of state students. The out of state students are not being disadvantaged; the proper perspective is that in-state students are being advantaged.
talker
Fri, Jul 12, 2013 : 2:42 a.m.
Out of state students choose to come here. They don't have to come here. It's about more than how much money comes from the state. The parents of in-state students pay Michigan taxes and pay local, property taxes whether as home owners or as renters (part of the rent reflects property tax payments). My concern is more about Michigan students who are very well qualified to come, but are either turned down for lack of openings. I'm also concerned about openings for qualified students who choose to save money by attending community colleges for two years and then want to matriculate to the U. of M.. The U. of M. doesn't consider being a student here for a year as establishing residency. What troubles me are stories I've read about the spouses of house staff at the U. of M. medical center who are denied in-state rates despite their spouse working and training at the U. of M. for several years.
Goober
Thu, Jul 11, 2013 : 8:11 p.m.
Greed. Pure Michigan -Err, greed! Go figure!
Mike
Thu, Jul 11, 2013 : 7:51 p.m.
The government made 120 billion dollars on student loads over the last five years. As PT Barnum used to say there's a sucker born every minute.................
Jay Thomas
Fri, Jul 12, 2013 : 1:41 a.m.
Oh goodie, then they pay for themselves. Oh wait...
mr_annarbor
Thu, Jul 11, 2013 : 7:05 p.m.
Who cares? If it's keeping tuition lower for in-state students, and not keeping qualified in-state students out, I'm all for it.
blue85
Fri, Jul 12, 2013 : 6:19 p.m.
"Of course it keeps qualified in-state students out! Instead we get wealthier out-of-state students. Joy." As posted above, very few Michigan residents apply to UM (something like 25% of all applications), and quite a few turn UM down (30% of those accepted by UM say no). The kids who don't apply are turning down a phenomenal bargain; the kids that go elsewhere must have very good and/or very cheap options.
spaghettimonsters
Fri, Jul 12, 2013 : 2:44 a.m.
Of course it keeps qualified in-state students out! Instead we get wealthier out-of-state students. Joy.
mphill
Thu, Jul 11, 2013 : 6:54 p.m.
in my experience out-of-state students greatly exceed the number of in-state students, especially in elite departments like the in the School of Music. UM has indeed found a way to sell education to the highest bidder. Shame shame shame and so sad
blue85
Fri, Jul 12, 2013 : 6:17 p.m.
"UM has indeed found a way to sell education to the highest bidder. Shame shame shame and so sad" Yes, it is a shame that the residents of Michigan won't pay to educate their children. There is no shame in UM seeking alternate funding sources to maintain the quality and reputation of its "product"...to do otherwise would equate to poor stewardship.
rod
Fri, Jul 12, 2013 : 5:53 p.m.
It is keeping qualified Michigan students out. I know of a girl that applied this year with a 4.0, 32 ACT score, varsity sports, and community service that did not get in. I bet there are many incoming freshmnan that have been admitted that are far less qualified and were either admitted because of the tuition being paid from over seas students or minorities.
Sparty
Thu, Jul 11, 2013 : 8:55 p.m.
It's what happens when the number of Students graduating in Michigan falls, and the amount of State Aid continues to fall off the cliff as well .... while the financial aid to students continues to increase so that the majority of Michigan students receive some type of aid to attend.
seldon
Thu, Jul 11, 2013 : 6:41 p.m.
I'm not surprised it's high. A surprisingly small percentage of UM's funding comes from the state these days.
Kellie Woodhouse
Thu, Jul 11, 2013 : 6:05 p.m.
The number of non-resident undergraduates at the school —who pay $27,250 more in tuition than Michigan residents— is anticipated to increase by 0.5 percent in fiscal 2014, according to U-M Provost Martha Pollack. U-M anticipates that in the fall 60.9 percent of undergraduates will be Michigan residents. U-M enrolled 42.6 percent of its 2012-13 freshman class from out of state - the largest percentage in recent history. School officials say the growth is due to demographic trends in Michigan — state high schools are producing fewer graduates — and not because of a cash grab for more tuition dollars.
blue85
Fri, Jul 12, 2013 : 6:16 p.m.
"School officials say the growth is due to demographic trends in Michigan — state high schools are producing fewer graduates — and not because of a cash grab for more tuition dollars. ** Right. Just like the north campus and engineering departments aren't relying on international students for out of state tuition and no financial aid, as they don't qualify, yet they make up the vast majority of students in engineering." Several points: 1) with an is-state "yield" of roughly 70%, roughly 1600 in-state students turn UM down each year, leaving seats open for others; 2) of the roughly 47,000 applications in the last year, roughly 10,000 were from Michigan residents...it would be very difficult to populate a QUALIFIED class from such a small pool of applicants; 3) there has been an evident shrinkage in the population of Michigan, this results in a smaller pool of applicants; 4) the "grab for dollars" is just another way of saying that Michigan residents don't value education and are not willing to pay for it, so UM is selling the surplus capacity to those who can and will pay for it. I understand and empathize with your shame: you are a resident of a state which is too poor to educate its young; or which is too cheap to do so...preferring instead to pay for prisons. Yes, the priorities are shameful so I feel your pain.
spaghettimonsters
Fri, Jul 12, 2013 : 2:43 a.m.
JRW, you beat me to it. It absolutely is a money grab, and especially from international students. More evidence that the university is just out for cash? That otherwise useless idea to construct a "graduate student" dormitory on the site of what is now (partially) Blimpy Burger. Build it and they will...pay full non-residential tuition, room and board.
JRW
Thu, Jul 11, 2013 : 8:15 p.m.
School officials say the growth is due to demographic trends in Michigan — state high schools are producing fewer graduates — and not because of a cash grab for more tuition dollars. ** Right. Just like the north campus and engineering departments aren't relying on international students for out of state tuition and no financial aid, as they don't qualify, yet they make up the vast majority of students in engineering.
Judy
Thu, Jul 11, 2013 : 6 p.m.
"Yet the high cost of non-resident tuition means U-M's out-of-state student population is less economically diverse than its in-state population." So!
Great Lakes Lady
Thu, Jul 11, 2013 : 8:59 p.m.
Not necessarily so.....certainly a percentage receive scholarships.
Billy
Thu, Jul 11, 2013 : 5:43 p.m.
What percentage of the student body is out-of-state?
Evan Smith
Thu, Jul 11, 2013 : 9:19 p.m.
Just over a third
JimmyD
Thu, Jul 11, 2013 : 5:46 p.m.
It's less than 50% ---- who has the current stat?
JimmyD
Thu, Jul 11, 2013 : 4:26 p.m.
We're # 1 ! ! ! ! !