First, a clarification:
In-state tuition is usually cheaper at certain universities that are funded and run by the state. It’s a specific benefit to the taxpayers of that state. We usually call these “state schools.” Most of them have names like “The University of STATE” or “STATE NAME State” but the names can be confusing at times. (The University of Connecticut is a state school. Connecticut College is private.)
“In-state” tuition isn’t a thing at private universities.
So for example: you live in Connecticut. You can pay the in-state rate to attend one of Connecticut’s state schools… the University of Connecticut, Western Connecticut, etc. But if you want to attend Yale (which is also in Connecticut) you don’t get a break for being a local.
Sometimes, state-run universities will offer the in-state rate to students from other nearby states as a way of boosting enrollment. Western Connecticut – which is right near the border between Connecticut and New York – offered in-state tuition rates to students from New York a while ago. (I don’t know if that’s still true.)
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