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Cost of in-state vs out-of-state tuition

Public universities often offer substantial discounts to in-state students, making them an affordable option. However, out-of-state tuition can be costly, especially as public schools may meet less of your demonstrated financial need and offer more loans than grants. Surprisingly, private colleges can sometimes be a cheaper alternative than out-of-state public schools.

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Video transcript

- So, for a lot of students, public universities and colleges within their state are going to be the cheapest schools for them because states are going to give substantial discounts to students who reside within their state. And in addition, there are a number of consortiums of public universities within various regions in the United States, so there's, for instance, the Western Undergraduate Exchange which is a consortium of public schools in the west that give students in that entire region good price discounts. However, one thing you have to be really careful about is that if you are looking at public universities or colleges outside of your state, you will not get these price discounts for in-state tuition. Therefore, public schools out of state can actually be the most expensive schools for students, because number one, you're paying out-of-state prices. Number two, public schools are the schools, often, that are going to meet a lesser percentage of your demonstrated financial need. And number three, often, public schools are the schools that are gonna give more of their money away in the form of loans that you have to pay back at interest instead of money in the form of grants and scholarships, which you don't have to pay back. So what's interesting is that sometimes, private colleges and universities can be a cheaper alternative for students than public out-of-state schools.