First of all, this only applies to public universities. The way it works is everyone starts with the same tuition. But in-state students get a big part of it paid by the state whereas out-of-state students pay the whole bill.
In some states (like California State Universities) there’s less funding for Winter or Summer sessions, so everyone has to pay the same amount. Also, after a couple years living there (varies per state) you can claim residency and be eligible for in-state tuition. This doesn’t apply to international students though.
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