The Effect of In-State Tuition on International Student Enrollment: Evidence from the Heartland

Abstract

In 2008, the Minnesota State Colleges and Universities (MSCU) system modified residency criteria for tuition determinations and allowed institutions to charge international students in-state tuition. We use IPEDS data and a difference-in-differences design to determine the impact of the policy change on new international student enrollment in MSCU public four-year colleges relative to those in neighboring states, the Heartland, and all other states. We also derive a synthetic control group and compare the results. The findings indicate the MSCU policy allowing international students to pay in-state tuition drew 385 new international students to the state in the policy’s first year. Domestic student enrollment did not change, so we infer the policy resulted in an increase in net revenues. We discuss the benefits of expanding in-state tuition to international students, including how it can attract international students to less selective and regional college and universities, increase the cultural diversity of campus and local communities, and expand access to higher education to a more socioeconomically diverse population of students seeking to study in the United States.