Report No. 2007-31
August 2007

Most Missouri Institutions Charge Nonresident Tuition Rates Lower Than Similar Institutions in Surrounding States

Missouri's 4-year public institutions charged nonresident students tuition rates lower than institutions in most Big 12 Conference and contiguous states while, as noted in a previous report, charging in-state students tuition rates that ranked high. In fiscal year 2006, Missouri's annualized average nonresident tuition price for 4-year public institutions of $11,709 ranked among the lowest in our comparison group (8 of 11), while average in-state tuition price of $5,829 was the highest among Big 12 Conference states and second only to Illinois among contiguous states.

Inconsistencies between regional and doctoral/research institutions exist

Nonresident tuition charged by Missouri's regional institutions was lower and the doctoral/research institution higher than the comparison group of states. While fiscal year 2006 average nonresident tuition charged by the University of Missouri, $17,360, was 17 percent higher than the $14,871 average for doctoral/research institutions, the average charged by Missouri regional institutions, $9,198, was 15 percent lower than the average nonresident tuition rate, $10,829, charged by regional institutions in the comparison group of states. (See page 8)

Compliance with existing DHE policy not monitored

DHE had not monitored compliance with an existing policy regarding nonresident tuition. In June 1983, the coordinating board reaffirmed its existing policy that nonresident tuition should be twice the cost of in-state fees. However, according to a DHE official, the policy had not been enforced because DHE lacks statutory authority. (See page 9)

Policies to set nonresident tuition varied by state

According to a study by the State Higher Education Executive Officers Association, 7 states set nonresident tuition based on 100 percent of the cost of undergraduate instruction. In 10 states, nonresident tuition is indexed to the undergraduate resident tuition rates. The study indicated alternative methods were used in 12 states, no formal policy existed for 17 states, and no information was provided for 6 states. Missouri's policy of charging 200 percent of in-state tuition was the lowest of the 10 states that indexed nonresident tuition to in-state tuition. The indexed percentages ranged from 250 to 400 percent in the other 9 states. Other Big 12 Conference and contiguous states charged between 203 and 338 percent of average in-state tuition to nonresident students, while Missouri's average was 201 percent for fiscal year 2006. (See page 10)

State institutions lack written nonresident tuition policies – methods vary

We contacted officials at 5 regional institutions and the University of Missouri system. Officials at all of these institutions told us the institutions had no written policy documenting how nonresident tuition rates were set. Officials from two institutions told us nonresident tuition was increased by the same percentage as the resident tuition increase, two stated the instructional portion of resident tuition was doubled for nonresident students, one stated the resident tuition was doubled for nonresident students, and one told us the amount of the resident tuition increase was doubled for nonresident students. Officials from all six institutions told us fees charged are the same for both resident and nonresident students. Finally, officials from three institutions stated students from bordering states living near the institutions are allowed to attend at resident tuition prices. (See page 10)

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