My comments was not specific to Michigan, but yes. I have heard similar stories from several students in my area over the years. Basically, for OOS applicants it seems more competitive that for in state for many schools. And, while I understand that the objective of public schools is to educate their in state students, I have just heard that upon arrival the students perceive a difference.
On the flip side, the draw for the school to attract OOS is that obviously they pay more.