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If you’re attending a public university that is not in your home state, establishing residency could significantly reduce the tuition bill. However, establishing residency for the sole purpose of qualifying for in-state tuition can be difficult. Generally, you need to be financially independent, live in the state for at least a year, and demonstrate that you intend to stay in order to be considered a resident of a new state.

Read on for a closer look at what it takes to establish residency where you go to college, whether or not it’s worth the effort, plus other ways to get a break on out-of-state tuition at a public university.

Establishing Residency

Each state has their own requirements for establishing residency. Requirements can also vary based on the university, which can add confusion to the process. Here are some of the general requirements that states and universities often require to determine residency:

•   Physical Presence Most states need you to be a resident for 12 consecutive months before you qualify for in-state tuition. The time to establish residency could be more or less, depending on the state.

•   Intent Students generally must prove that they are living in a state for more reasons than just attending school.

•   Financial Independence Typically, students must prove they are financially independent and no longer supported by their parents.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

3 Tips for Establishing Residency

Establishing residency can be difficult, but with these tips and a little legwork, you may be able to become a resident of the state where you go to college and, possibly, slash your tuition bill.

1. Relocate as Soon as Possible

Since most states require you to be a resident for 12 consecutive months, it makes sense to relocate as soon as you can. If you are currently enrolled in a school, and are hoping to establish residency, this could mean spending your summers on-campus or at the very least in that state. You may also need to rent or buy property, as well as pay income taxes in your new state.

In addition, you’ll likely have to cut ties to your home state and do things like change your voter registration.

2. Boost Your Reasons for Moving

You usually need to prove the reason you moved to the state wasn’t solely for getting in-state tuition.

There are a few things you can do to help prove intent:

•   Get a new driver’s license

•   Register a vehicle

•   Get a state hunting and/or fishing license

•   Open a local bank account

•   Get a local library card

Having any of these things in your old state may make it more difficult to establish residency in your new state.

3. You May Have to Distance Yourself from Your Parents

One of the common requirements for establishing residency is financial independence. This can make establishing residency extremely difficult for students between the ages of 18 and 22 who are still being supported by their parents. Becoming an independent student before the age of 24 can be challenging, both logistically and emotionally.

You may already be an independent student if:

•   You are married

•   You are a veteran

•   You have dependents of your own

•   You are a legally emancipated minor

If you are a dependent student, it’s worth weighing the pros and cons of establishing residency on your own. It could mean delaying graduation and paying for college without any help from your family.

Alternatives to Establishing Residency

Establishing residency in a new state isn’t always the only option for getting in-state tuition. Some states participate in regional reciprocity agreements that let students attend colleges in bordering states at a discount.

Here are a few examples:

1. New England Regional Student Program

Run by the New England Board of Higher Education, this program allows New England residents to enroll in out-of-state New England public colleges and universities at a discount. To be eligible for the program, students must enroll in an approved major that is not offered by the public colleges and universities in their home state.

This program includes six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

2. Midwest Student Exchange Program

Through the MSEP , public institutions agree to charge students no more than 150% of the in-state resident tuition rate for specific programs. Some private colleges and universities offer a 10% reduction on their tuition rates.

Participating states include: Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin. You can use its database to find colleges and universities participating in the program.

3. Southern Regional Education Board’s Academic Common Market

This program is similar to the New England Regional Student Program. It provides tuition-savings to students in the 16 SREB states who are interested in pursuing degrees that are not offered by their in-state institutions. Students are able to enroll in out-of-state institutions that offer their degree program, but they pay the in-state tuition rate.

Participating states include: Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. You can use its database to find participating institutions.

4. Western Undergraduate Exchange

The Western Undergraduate Exchange is open to students from any of the 16 states that participate in the Western Interstate Commission for Higher Education (WICHE). The program allows students to enroll as nonresidents in more than 160 participating public colleges and universities and pay 150% (or less) of the enrolling school’s resident tuition.

Participating states and territories include: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, U.S. Pacific Territories and Freely Associated States, Utah, Washington, and Wyoming.

5. Exceptions for Students without Residency

Sometimes, residency rules are waived or are more lenient for students with special circumstances, including, veterans or the children of military personnel.

There is no single database of these exceptions, so if you think you may qualify for one, check with the colleges you are interested in to see whether there are any exceptions and how you can apply for them.

Recommended: What Is the Cost of Attendance in College?

Types of Student Loans to Help Students Pay for College

Even if you’re able to establish residency in a new state and qualify for in-state tuition, you still may need help paying for college. Scholarships, grants, and work-study are types of financial aid that are not required to be repaid. Beyond that, student loans are also an option. There are two major categories for student loans: federal and private.

Federal Student Loans for Undergraduate Students

Federal student loans are funded by the U.S. government and are subject to a set of standard rules and regulations. The interest rate on federal loans is fixed, which means it remains the same over the life of the loan. These interest rates are set annually by Congress.

There are two main types of federal student loans that may be available to undergraduate students — Direct Subsidized or Direct Unsubsidized Loans.

Direct Subsidized student loans are awarded based on financial need. The interest on these loans is paid for (or subsidized) by the U.S. Department of Education during the following periods:

•   While the student is enrolled in school at least half-time

•   During the loan’s grace period, which is usually the first six months after the borrower graduates or drops below half-time enrollment

•   During qualifying periods of deferment, which is a period of time when loan payments are paused
Borrowers with unsubsidized loans are responsible for all of the interest that accrues on the loan, even while they are attending school

To apply for a federal student loan, students must fill out the Free Application for Federal Student Aid (FAFSA®). Students interested in receiving financial aid must submit the FAFSA each year.

Private Student Loans

Private student loans are borrowed directly from private lenders like banks or other financial institutions. These loans may have fixed or variable interest rates. Unlike the federal student loans available to undergraduate students, which do not require a credit check, private lenders will generally review a borrower’s credit history, among other factors, when making their lending decisions.

In general, you’ll want to consider private student loans only after you’ve tapped any federal loan options available to you. This is because private lenders do not offer the same protections — such as income-driven repayment plans — to borrowers.


💡 Quick Tip: Federal student loans carry an origination or processing fee (1.057% for Direct Subsidized and Unsubsidized loans first disbursed from Oct. 1, 2020, through Oct. 1, 2024). The fee is subtracted from your loan amount, which is why the amount disbursed is less than the amount you borrowed. That said, some private student loan lenders don’t charge an origination fee.

The Takeaway

Establishing residency can help a student qualify for in-state tuition, which could lead to a substantial savings in tuition costs. Unfortunately, establishing residency for the purpose of qualifying for in-state tuition, especially as a dependent student, can be challenging. Some states, however, have reciprocity agreements with other states, which allows you to benefit from lower tuition without establishing residency in a new state.

Whatever tuition you end up paying, there are resources that can help make the cost of going to college more manageable, including financial aid and federal and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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High-paying, high-demand occupations don’t always require a degree from a traditional four-year college. What if you could dramatically increase your income with a certificate or two-year degree from a trade school?

A trade school (also known as a vocational school) prepares students to enter a career that requires specialized training, such as being a medical assistant, plumber, dental hygienist, paralegal, or veterinary technician. Trade schools also offer a more affordable alternative to a four-year college or university.

Is trade school for you? Here’s a look at the pros and cons.

Is College Necessary for Your Career?

It seems like there’s more and more emphasis on attending a traditional four-year college or university right after high school, but is it absolutely necessary for your career?

It depends on the type of work you want to do. While traditional four-year schools provide students with the general skills necessary to become well-rounded learners, a trade school provides vocation-specific courses. Trade school students don’t need to take classes outside of their field of study but instead focus only on preparing for a specific occupation. Depending on the type of career you’re looking to get into, you may or may not need a four-year degree.


💡 Quick Tip: With benefits that help lower your monthly payment, there’s a lot to love about SoFi private student loans.

Understanding What a Trade School Is

A trade school, or vocational school, focuses its curriculum on specific skill-based vocations. But don’t let the name “trade school” fool you into thinking these schools are just for mechanics or electricians.

There are a wide variety of trade school programs specializing in careers in web design, entrepreneurship, software development, culinary arts, film production, nursing, paralegal studies, and many other areas of study.

Pros of a Trade School

Trade schools can have plenty of advantages. Here are a few to consider.

Specific Course of Study

A trade school can be a solid option for those who know what career they want. Trade schools often have a more focused curriculum. Students generally won’t have to spend time filling general education requirements. Classes are curated to the student’s chosen field and some programs offer hands-on training.

You won’t have to worry so much about choosing the right major. Trade schools cover specific areas of study, which can help you zero in on your career choice.

Less Time to Complete Than a Four Year Degree

Another pro of a trade school is it typically takes less time to complete your degree. Students can often pursue short-term certificates, one-year diplomas, and two-year associate’s degrees, although they may need to get additional training or an apprenticeship for certification or licensing depending on the chosen career field.

Recommended: What Are Apprenticeships?

Faculty Attention

Attending a trade school can also mean more one-on-one attention from faculty. Generally, trade schools boast smaller class sizes than four-year colleges and universities. This could mean more individualized attention from faculty.

If you study better with less distraction (and fewer people), a trade school may offer a conducive learning environment.

Cons of a Trade School

While trades schools have many advantages, they’re not for everyone. Here are some cons to consider.

Extremely Focused Curriculum

For students who know what they want out of a career, the focused course of study is a pro. But for students who aren’t sure what they want to study, the narrow focus may be limiting.

Non-Traditional College Atmosphere

Things are done a little bit differently at a trade school versus college. If you end up attending a trade school, you might not have that traditional university feel of game day Saturdays, Greek life, or pulling an all-nighter at the library.

You most likely won’t be living on campus in a dormitory setting, either. This could be seen as a disadvantage if you’re craving a more traditional college atmosphere where students wear school gear daily.

Narrow Focus May Limit Career Options in the Long-Term

With a trade school degree, students specialize in a specific area. This can be great for job placement after graduation, especially when there is a skilled-labor shortage. However, over time, trade schools may not prepare students for changes in their chosen industry. A broader degree may lead to more flexibility and versatility in the workforce.

Recommended: Community College vs College: Pros and Cons

How Much Trade School Costs

So, how much does trade school cost? It depends on what program you apply for and how long the program takes to complete. Generally speaking, however, you can enroll in a trade or vocational program for around $5,000 per year and graduate within two years. Keep in mind that there could be additional costs, such as licensing, outside of school to get started on a career path.

This is significantly less than attending a traditional college. According to the Education Data Initiative, the average cost of going to a four-year college is $36,436 per student per year, including books, supplies, and daily living expenses.

Trade school can be a more affordable option, and many schools offer financial aid and scholarships that could help further lower the overall cost.

Recommended: How Much Does Culinary School Cost?

Can You Take out Loans for a Trade School?

There are plenty of student loan options for traditional colleges and universities, but what about taking out loans for a trade school? Some private lenders may provide private student loans for trade schools or associate’s degree programs, but many do not. Additionally, the lenders that do offer these types of loans will review your credit history and other factors before determining the type of financing you’ll qualify for.

Federal aid, including subsidized federal student loans, is also available for some trade schools, though you must meet certain requirements. For instance, you must be enrolled at least half-time in a program that leads to a degree or certificate. In addition, the school must be accredited. You can search for accredited schools through the Department of Education’s database .

To apply for federal student loans, you must complete the Free Application for Federal Student Aid (FAFSA). This is the government’s official application for federal student loans, as well as federal grants and work-study.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

The Takeaway

Trade school can be a smart choice for students who have a specific career path in mind. Generally, trade school is more affordable than a four-year college degree, and can take a shorter time to complete. Some schools may be eligible for federal financial aid. However, You may not qualify for federal student loans if your program is not accredited. And while some private lenders offer loans for trade school and associate’s degree programs, others (including SoFi) do not. You generally have more financing options when choosing a four-year college or university.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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