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US colleges drop fees to poach students from neighbouring states

Amid steep demographic declines, competition replaces cooperation for institutions that rely heavily on local populations

Published on
August 14, 2023
Last updated
August 14, 2023
Source: iStock

A high school student in Davenport, Iowa, or St. Louis, Missouri, will soon be able to attend the University of Illinois Springfield for the same price as an Illinois resident, thanks to a tuition-matching programme approved last month by the UI system board of trustees.

Designed to attract a larger pool of applicants and shore up falling in-state enrolment, the programme, set to begin聽in the autumn of 2024, is just the latest example of a trend that鈥檚 picking up speed in the regions hit hardest by demographic shifts, most notably the Midwest and Northeast.

Tom Harnisch, vice-president for government relations at the State Higher Education Executive Officers Association (SHEEO), said adopting tuition policies meant to entice students from neighbouring states is particularly pronounced among regional four-year universities that have long relied on local populations.

鈥淭he institutions that are really on the front lines of this are regional public universities,鈥 he said. 鈥淭hey were designed to provide higher education to specific areas of the state, and so now that those areas are declining in population, they鈥檙e looking beyond their regions.鈥

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Vickie Cook, Springfield鈥檚 vice-chancellor for enrolment and retention management, said the initiative is a pilot programme meant to help regionally local students who are interested in attending but cannot afford to pay out-of-state tuition. She anticipates that anywhere from 75 to 100 students from the three counties in the pilot will take advantage of the programme in its first year, up from the 30 who currently attend.

It is also an experimental solution to Illinois鈥 dual crisis of declining college enrolment and workforce migration. Illinois has experienced a record population drop in recent years, losing聽聽alone. In expanding access across state borders, Professor Cook said, the system board is trying to lift out-of-state numbers to make up for a dive in the state鈥檚 population, especially its rural areas. And if the programme is successful, Professor Cook said, it could be expanded further into those states and at other campuses in the system.

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鈥淭his is one piece in a larger portfolio of approaches to the demographic cliff and other enrolment issues,鈥 Professor Cook said. 鈥淚llinois has had a lot of outmigration, so we鈥檝e been looking for solutions to that鈥he hope is these students come over and stay after graduating.鈥

But the neighbours Illinois is looking to pull from are not exactly flush with students, either. Post-secondary enrolment in Iowa fell by 13聽per cent from 2019 to 2023, the fifth-largest drop in the country, according to data from the聽. And enrolment at the University of Missouri-St. Louis, a regional public college located within the range of Springfield鈥檚 pilot programme, has聽聽since 2011.

Edward Conroy, a senior adviser at New America鈥檚 education policy team, said fiercer competition among states was probably an inevitable result of enrolment trends聽鈥 but that it is hardly sustainable.

鈥淚f you need to maintain a certain enrolment goal to be solvent as an institution, and you鈥檝e got fewer of your own students in a Midwestern state with a declining high-school-age population, then unless you鈥檙e willing and able to shrink, you鈥檙e going to go to your neighbouring state,鈥 he said. 鈥淏ut if you鈥檙e peeling off from your neighbours, you鈥檙e going to be vulnerable to them doing the same to you.鈥

From cooperation to competition

Dr Conroy said the more cutthroat approach marks a departure from a bygone era of cooperation.

Some older tuition-matching agreements function more like partnerships, such as the Western Undergraduate Exchange, a reciprocal tuition-reduction partnership founded in 1987 among the 16 member states of the then-nascent Western Interstate Commission for Higher Education (WICHE).

Illinois鈥 programme is not reciprocal. Neither are the flagship tuition-matching programmes at the聽State University of New York (SUNY) system聽or the聽, both of which聽have been launched in the past聽10 years to draw students from far-flung states, not just nearby counties.

鈥淥ne important facet of this is whether these approaches are being used to enhance cooperation and support for students, or to try and poach students from neighbouring states,鈥 he said. 鈥淲hen WICHE was formed, the future of enrolment looked very bright鈥 A big piece of this change is that the enrolment landscape looks very different today. It鈥檚 much more competitive.鈥

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In some cases, that competition has manifested in heightened cross-state tensions. SUNY has been particularly dogged in its plays for out-of-state students. Last year, it launched a programme guaranteeing that 22 of its campuses would match the in-state tuition of flagship universities in eight select states聽鈥 some nearby,聽such as Connecticut and New Jersey, and others distant, like California and Illinois.

鈥淢y suspicion is that it was very targeted at states they already know are sending a number of students,鈥 Dr Conroy said. 鈥淪omebody did some very good analysis and said: 鈥楬ere are the states where we get a lot of students, and we could probably get some more if we get creative.鈥欌

The plan, combined with SUNY鈥檚 free-tuition programme for students whose individual or family income is below $125,000 (拢100,000) from any state, has sapped students from areas already hurting from enrolment declines. The gambit appears to have paid off for SUNY, which saw a聽聽last year.

But SUNY鈥檚 efforts have exacerbated enrolment challenges elsewhere. Pennsylvania State System of Higher Education聽chancellor Daniel Greenstein, who oversees a constellation of largely regional public institutions and has been managing a planned consolidation to cope with falling enrolment, called the SUNY policies 鈥渁ggressive鈥 in an聽.

A SUNY spokesperson did not respond to a request for comment.

Even measures to bolster in-state retention are threatening to upset a delicate balance in some demographically challenged regions.

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Last year, Minnesota launched North Star Promise, a free-tuition programme for resident students. It was meant to keep Minnesotans in the state鈥檚 public colleges, which have struggled with a聽聽since 2013聽鈥 not to reel in students from neighbouring states. But North Dakota, the fourth-least-populous state, has fewer college-age residents than most and relies on students from Minnesota鈥檚 rural northwestern counties to fill seats at its public colleges. North Dakota University System (NDUS) chancellor Mark Hagerott said there are about 10,000 Minnesotans spread across the system.

Most of those students are concentrated a short way across the Minnesota border at North Dakota State University in Fargo, where in autumn 2019 they made up about half the total undergraduate population and outnumbered in-state students, according to an institutional聽. At the University of North Dakota Grand Forks, also just over the border, Minnesota residents make up聽.

So, when North Dakota lawmakers and higher education leaders heard of Minnesota鈥檚 tuition plan, they feared it could be 鈥溾, in the words of NDSU president David Cook.

Dr Hagerott said he hopes students look at 鈥渢he full picture鈥 of what North Dakota schools offer, but admits that the North Star Promise programme is more likely than not to tear away at least some of the system鈥檚 Minnesota students.听

鈥淭he word 鈥榝ree鈥 is a powerful advertising tool,鈥 he said. 鈥淔amilies who are just kind of overwhelmed by the complexity of [Free Application for Federal Student Aid] FAFSA forms and North Dakota scholarships, I could certainly see them just seeing the headline.鈥

Building pressure for affordability

Despite the exodus of Pennsylvania students spurred by SUNY鈥檚 robust out-of-state funding programmes, Dr Greenstein acknowledged that, at the end of the day, students are making a financial decision, comparing prices that Pennsylvania鈥檚 public institutions聽鈥 some of the聽聽in the country聽鈥 just cannot match.

Dr Harnisch, of SHEEO, hopes the added pressure will force states to rein in college costs in order to compete.

鈥淭here could be real benefits for students here, to have more opportunities to attend institutions that, if they had to pay the full out-of-state tuition price, they might not be able to attend,鈥 he said. 鈥淭hat鈥檚 a good thing.鈥

There is some movement in that direction. Minnesota鈥檚 free-tuition programme has inspired North Dakota state senator Tim Mathern to put forth a proposal for a copycat programme, titled 聽鈥撀燼 not-so-subtle pun on Minnesota鈥檚 North Star Promise programme.听聽聽聽聽聽

Dr Hagerott isn鈥檛 confident that Mathern鈥檚 proposal will gain traction. 鈥淲e鈥檙e a very self-sufficient state,鈥 he said, 鈥渁nd giving something away for free kind of goes against the North Dakota spirit.鈥 But he does believe that as the enrolment wars heat up in the nation鈥檚 struggling regions, colleges and lawmakers will resort to more dramatic measures, both to keep their students from the grasping hands of others and to lure more over their borders.听

鈥淭his is a sign of the times, unfortunately,鈥 he said. 鈥淚t鈥檚 just going to be part of what happens increasingly across the country.鈥

Dr Conroy, like Dr Harnisch, hopes that tuition-reduction programmes beget more of the same聽鈥 a 鈥渞ace to the top, rather than a race to the bottom,鈥 he said. But he fears that fiercer competition will necessarily lead to losers as well as winners in the enrolment tug-of-war. He said federal stewardship could help prevent that.听

鈥淚t points to why there is such a need for a strong federal-state partnership around free public higher education,鈥 he said. 鈥淎bsent that, we're going to continue to see states making, frankly, rational choices to attract out-of-state students and maintain the solvency of their public higher education systems.鈥

Regardless, Dr Conroy said focusing on poaching traditional-age students from beyond usual recruitment zones is a 鈥渟hort-term solution鈥. He hopes that regional public universities turn towards adult learners or those with partially completed degrees, a population of about 40 million that is growing year over year, according to聽聽from the National Student Clearinghouse.

Or, he said, they can keep fighting over each other鈥檚 traditional applicants. They should just be aware that, eventually, there will be no more ponds to fish in.

This is an edited version of a story that first appeared on .听

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