Universities boosting revenue by courting out-of-state studentsBecause many state schools have struggled with higher education budget cuts, they're seeking out new ways to boost revenue and increase the amount of money they bring in annually. One of the latest ways they're attempting to do this is by increasingly reaching out to out-of-state students.

Out-of-state students pay more
Universities are seeking to add more out-of-state students to increase their annual revenues. Students who don't reside in the same state as the university they wish to attend typically pay higher tuition and fees, making them valuable to state colleges.

San Diego State University, a part of the California State University system, has recently jumped on this trend. The school decided to implement an admissions freeze for the upcoming spring semester, but this freeze applies only to California residents. Out-of-state students can still be granted admission if their program of choice has space available.

Recruitment becoming more common
Colleges across the country are seeking to benefit from students who will pay more in annual tuition. It's not just out-of-state students that are highly desirable - international students are recruited by state schools as well. A 2011 survey revealed that more than half of public university admissions officers were actively seeking students who could be charged a higher rate.

More frequent recruiting is building the number of non-residents attending public universities. The Huffington Post reported that at the Universities of Michigan, Virginia and Wisconsin-Madison, roughly one-third of students come to the schools from out-of-state or internationally. At the University of Iowa and Penn State University, that number is close to half. University budget planning is relying increasingly on students who pay higher tuition rates.

A controversial move
While some support public universities seeking more out-of-state and international pupils, others are dismayed at the move.

Naysayers claim this trend will hurt state residents who support their local universities and favor those who have the money to pay more. Supporters claim that increasing revenue by admitting more out-of-state students will benefit the entire campus population. University of California, Berkeley, chancellor Robert Birgeneau challenged the theory that non-resident students are hurting residents, and told the Huffington Post that in-state pupils benefit "using the resources provided by the increased tuition paid by our out-of-state and international students."

Because state university funding has been cut drastically over the years and the economy remains uncertain, schools are continuing to actively recruit out-of-state and international students to increase revenues and boost enrollment.
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  1. The more non-Californians admitted to University of California the fewer residents can be. Fall admit rate for residents drops to record low 18%. There was a 43 percent jump in the number of affluent foreign and affluent out-of-state students by public University of California Berkeley.

    Cal. Chancellor Birgeneau ($450.000), Provost Breslauer ($306,000) shed thousands of eligible instate applicants. Residents are replaced by a $50,600 payment from born abroad affluent foreign and affluent out of state students. And, Birgeneau subsidizes affluent foreign and affluent out of state tuition in the guise of diversity while he doubles (Harvard College now less costly than Cal.) resident tuition.

    Birgeneau/Breslauer hapless leadership accepts $50,600 tuition to displace California residents (When depreciation of tax funded assets, infrastructure etc, are included (as they should be), out of state and foreign tuition is more than $100,000 and does NOT subsidize resident tuition.

    With the influence of UC Berkeley Chancellor Birgeneau, Provost George Breslauer deployed excessive force by campus police - rammed baton jabs - on students protesting Chancellor’s doubling of resident tuition. Sack (honorably retire) dysfunctional Provost Breslauer. Birgeneau resigned.

    Email a message to UC Board of Regents marsha.kelman@ucop.edu and Calif. State Senators and Assemblymembers.

  2. Mr Moravec - it's not "affluent" non-residents...it's those displaced by their state schools' insistence upon recruiting non-residents. A vicious cycle that is saddling families and students with huge debt. Alternatives? Not attending (boycotting) these schools, if you can afford to work at home until the bubble pops.