Possible In-State Tuition Loop Hole?

Paying for College
1

Hello!

I have some questions about if this would be possible. I want to go to Florida State University when I graduate college, because that school provides the best options for my career choices. However, I live in Indiana, which creates quite the fee in order to attend that school. In-state tuition is only about $7,000, but out of state tuition is closer to $40,000. This creates a large problem, as although I have quite a large college fund, I surely do not have enough to cover over $160,000 worth of fees.

I would like to end my college career with minimum to no debt. I know that debt is impractible to evade, but I would like to have some kind of financial security when I graduate college.

My college fund consists of roughly $35,000, and because it is actually inheritance money from my great grandmother, it is in my name, and I have complete access to it once I turn 18.
I would like to buy a house, very young. Although I am young, my credit score is better than most my age. I have never missed a payment, and I do not intend too. I haver researched houses in Tallahasse, and unless the economy plummets in a few years, there is no reason I would not be able to find a small house for $100,000-$120,000. I have done extensive research, and found very reasonable sized houses for that price. One of which was a 3 bedroom, 2 and a half bathroom, for only $98,000. It is most likely some sort of fixer upper, but none the less, I know I could find something relatively small and reasonable.

I have worked for over four years now, and althought it might be difficult to get a buyer to accept my payment, or a bank to give me a loan, I know it is possible. Because the money I would buy the house with is in my name, I would obviously have to do my own taxes, and I am willing to do that. I would get roommates, depending on the size of the house, most likely 2. They would pay around $400 a month, and I would get a part time job to keep up with the rest of the money, including mortgage, utilities, etc.

Along with the inheritance money, I have also saved up around $11,000 over the years, which is in my bank account that I have reserved for college. I would pay my mortgage in biweely intervals, saving me thousands of dollars in interest fees. And, because I will have put upwards of 20% down on the house, I will have about $15,000 left from the inheritance money(depending on the final cost of the house) This will enable me to keep up with my mortgage payments, in case one day something goes ary with my work situation. Although this money will be a backup plan, I will most definitely work at least part time to keep up with all payments.

If I provide sufficient evidence that the house was bought with my own money, and I am financially supporting myself, and not my parents, am I eligible for in-state tuition?

Please do not tell me that I will struggle paying off my mortgage. I have planned this out in detail, including how much I should set to the side of every pay check just in case. I just want to know if this plan of action will make me eligible for in-state tuition my freshmen year of college, without living in the house for a year, or will I have to begin planning for out of state tuition my freshmen year. These are two very different aspects, if somebody could answer these questions for me, that would be great.

2

You would have to find out what the requirements of Florida State U regarding instate residency are.

If you are 22 and move to Florida, get a full time job and buy a house, you could most likely become a Florida resident by the time you are 24 and can apply to FSU as instate student then.

At 24 you would be independent for financial aid.

If you are not independent for FA then they might determine your residency by the state your parents live in.

Is FSU a FAFSA only school?

3

http://admissions.fsu.edu/residency/

4

First, you are comparing two different costs. Instate tuition is about $6500 at FSU, but OOS is about $21000. The $40k number is even above the estimated COA.

There are a few ways to get instate tuition at FSU. One is through scholarships/programs based on your high school records. Another is to do a study abroad program as a freshman (at OOS rates) and then your remaining years are as a resident.

You would become a Florida resident by buying your own home, but that is different than being a resident for tuition purposes. You will probably need 12 months of residency to get the classification. Also, being a resident does not make you independent for FA purposes. That probably won’t happen until you are 24.

Required Documentation

It is recommended that you submit as many required documents as possible to justify your claim of Florida residency for tuition purposes; however, no claim of residency will be valid without at least one of the following documents and at least three documents total.

Florida Driver's license or for non-drivers, a State of Florida identification card
Florida voter registration card
Florida vehicle registration
Proof of purchase of a permanent home in Florida that is occupied as a primary residence of the claimant
Proof of homestead exemption in Florida
Transcripts from a Florida high school for multiple years if the Florida high school diploma or GED was earned within the last 12 months
Proof of permanent full-time employment in Florida for at least 30 hours per week for a 12 month period (Graduate students on Assistantship should complete and submit the Graduate Assistant Verification Form)

Supporting Documentation

It is recommended that you submit as many supporting documents as possible to justify your claim of Florida residency for tuition purposes. While all documents are important, the most critical to obtain is the Declaration of Domicile. The Declaration of Domicile is available from the Clerk of Courts in the County Court House of the Florida County in which you reside. Please note: No claim of residency will be valid without at least two required documents and at least three documents total.

Declaration of domicile in Florida ("filed date" must be 12 months prior to first day of classes)
A Florida professional or occupational license
Florida incorporation
Documents evidencing family ties in Florida
Proof of membership in Florida-based charitable or professional organizations

Any other documentation that supports the student’s request for resident status, such as:

Lease agreement and proof of 12 consecutive months of payments
Utility bills and proof of 12 consecutive months of payments
Bank records
Benefit histories from Florida agencies or public assistance programs
State, federal, or court documents evidencing legal ties to Florida
5

What is so special about Florida State over Indiana or Purdue?

6

This information is available online:
http://www.leg.state.fl.us/statutes/index.cfm?mode=View%20Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=1009.21&URL=1000-1099/1009/Sections/1009.21.html
You need to be a resident for one full year before attempting to enter a Florida college. That means you can’t just buy and house and start going to school. You have to live and work there for a year before even considering college.

I’ll give you props for thinking ahead.

Questions: How will you pay your yearly Florida taxes,mortgage, expenses, utilities, while going to school? A university education is nothing like taking courses at a high school. Purchasing a home, and its contents will be very expensive. It all adds up, plus paying tuition and fees.

You need to find a bank who is willing to fund a loan to an 18 year old, you have no line of credit or collateral.

I am sure there are some that may fund it, at an enormous interest rate. That money will be gone fast.

Why go to Florida? There are other more reasonably priced universities that are OOS.

7

Well, if OP gets a mortgage loan, the real estate will serve as collateral. But you do bring up a good point about the expenses, other than a mortgage payment, of owning a home, including property taxes (major expense) and homeowner’s insurance.

8

The real estate will be collateral, but the borrower still has to qualify for income and the bank won’t consider that some of the rooms can be rented for income until there is a history of it.

If the student moves to Tallahassee, gets a job, buys a house, and then tries for instate tuition, I think it will be granted. FA will still need his parents.

9

It is not the OOS University that I’m interested in, it’s their hands on program for criminology.

10

This will be your problem. The 12 month thing will be the issue, unless you can get a tuition waiver. Look at those programs.

11

Other financial considerations: Is the home you are considering on a flood zone? Flood insurance is required in a flood zone. The cost of required flood insurance has raised significantly.
Before purchasing, you will need to pay for an inspection and will have fees to take into account. In your situation, I’d strongly consider taking a year off to establish residency, take in roommates, open accounts, get a job in some area related to your interests … - even if you do all this, what would you do if you weren’t accepted into the program that you so strongly desire? You would have a house, which might be hard to sell, and not be able to attend the program that you want. On the other hand, it is a good idea to invest that chunk of cash into your primary residence, as otherwise FAFSA might count it against you.

12

Credit score is one thing, your available credit is another thing. Find out how much you can actually borrow which is related to your annual income. When you go to college, you probably would not have that income.

13

Consider buying a multi-unit home. A duplex with one master unit, plus a side unit, will enable you to earn rental income to help pay the mortgage. The rental income aspect may even help you qualify for the mortgage.

14

Is this for Grad School or Undergrad?

15

And the rental from that side will be considered income for financial aid purposes. And the half of the rental that is NOT the OP’s residence…value would be considered an asset.

But maybe he doesn’t need financial aid!