In-State Tuition - 9 Steps to Save Big Dollars For Your Student With In-State Tuition

State College and University Tuition, Housing and Misc Fees are going through the Roof. Causing Students and Parents to take out Large Loans ($40,000, $50,000, $60,000 and higher) to pay for the Cost of a Four Year State College Education. In Some States the Cost Difference between In-State and Out-of-State Students can be as high as $5,000 to over $14,500 Per Semester. Well worth the effort to gain the In-State Resident Status. Here are 9 steps the we have used to help our daughter gain In-State Resident Status and save us over $50,000 during the past 3 years. To Prove Residency follow these tips to help you save Big Dollars.

1. Student must contribute at least 51% to their support during the previous 12 months. This can be the hardest to verify you must be able to prove where money came from be aware that income such as savings accounts, gifts don't usually count. Stocks, Bonds, Real Property must be in the students name although parents can be shown as custodian. Educational IRA, State 529 Accounts, W-2's, weekly pay statements are the best documents to prove Income. You should show any cash income (baby sitting, Tip income and cash side jobs) can be and should be shown on the Students Tax Return.
2. Apartment Rental Agreement or Lease in Students name. The Students Utility Bills Telephone, Gas, Electric or Cable TV can be co-signed by parent. Be a Homeowner help your Student Buy an Income Rental Property with Parents both Names on Deed co-ownership is ok. You can save Big Dollars by Renting to Room mates who will share in the costs (mortgage, insurance, taxes and utilities).
3. Drivers License change ASAP your Student will need to prove He or She is a resident with an Apartment Rental Agreement/Lease or copy of Closing Statement on Real Estate Purchase. No 12 Month waiting period to get your License but States have rules on how long you can be a resident before you must apply for a License usually 30 to 60 days.
4. Voters Registration change ASAP along with License. Many Students don't Vote but this is another tool to prove Residency.
5. Students Tax Return Federal and State Returns must show that He or She is not a dependent on someone like Mom & Dads return. The Tax Return is a good way to prove income. On 2007 Federal Taxes a Student will have $5,350 Standard Itemized Deduction %2B $3,400 as a Single Exemption before you look at the Tax Schedule.
6. Mom & Dad make sure you do not claim your Student as a Dependent on your Federal or State Tax Returns. Colleges and Universities can and some do require copies of the Parents Tax Returns don't blow real dollar savings of $12,000 to $15,000 on a $3,400 personal exemption. That personal Exemption at a 20% Tax Rate is only worth $680.00.
7. Students Automobile When did they Buy It? How Much did it Cost? Is it in the Students Name? Who pays for Insurance in some States or near Big Cities with High Crime Insurance can be Through the Roof for the single 18 to 24 year old. If Car is not in the Students name it can be Considered as Parental Support and cause the Student to go after $1,000's of more Income to Offset the Support. Easy way out is don't have a car. Best Alternative is to have the Student Buy or Receive the Car as a gift while still in High School and Keep the Student on Your Insurance Policy to Hold Down the Rates.
8. Student Employment remember this is not a one-time event next year you will file the same forms to prove In-State Residency all over again. Your Student must have some kind of Part-Time Employment to meet the 51% Rule. During the School Year working locally will give them a W-2 from an In-State firm. Earning your during the Summer, Winter and Spring Breaks back Home at Mom & Dads house can put you easily over the top. But watch out Schools may ask why leave your resident state for work and have your Student verify and show their expenses or calculate Parental Support (room & Board) while working back home.
9. The Student must reside in the state for 12 months prior to the start of the semester. Some states will allow a mid year adjustment most states will only start with the fall semester. If your fall semester starts in August you must prove residency beginning from the previous July.

Becoming a State Resident is the first part toward Qualify for In-State Tuition. This is hard work a part time JOB for Mom & Dad. So it is best to start your JOB early like when your Student is accepted and makes the Big Decision to attend a particular College/University. In our case the Freshman year was a throw away Students at USC are required to live on campus and did not count as being a resident of the State. Sophomore year started the process Apartment Lease, License and Voter Registration Card, Auto Registration, Part-Time Job and Summer work In-State. Also bought a Rental House at the end of the School Year with Mom and her younger sister who was soon to be a Freshman. Qualifying for In-State was not very hard and even easier for her younger sister as a Sophomore who had owned a house and paid taxes for a year.

Bill Carey a Broker/Investor/Builder can help you save thousands of dollars in tuition costs with In-State Tuition. Bill personally saved $14,000 per year for each of his daughters with In-State Tuition.
His over 30 years experience in Real Estate Sales, Investments and Construction offers a unique perspective to the processes of Investment Grade Real Estate. Bill and his family own resort rental properties and a number of Off-Campus student rental properties in southern states. This started when our oldest daughter went away to school at the University of South Carolina in Columbia, SC. The Carey family continues to buy and successfully rents resort and student rental properties