Indiana has a huge problem with brain drain — or college graduates leaving the state. That’s largely because out-of-state students take seats at Purdue University West Lafayette and Indiana University Bloomington and then return home after graduation.
Nonresidents do pay more in tuition, which has helped Purdue freeze tuition for in-state undergraduates at under $10,000 per year and around $29,000 per year for nonresidents.
Regardless, out-of-state students make Purdue more expensive in other ways. Enrolling far fewer of them would make college more affordable with or without the tuition freeze.
The tuition freeze isn’t making college affordable
Contrary to popular belief, Purdue’s tuition freeze isn’t the most impactful when it comes to college affordability. A $10,000 sticker price at Purdue’s main campus isn’t going to make a meaningful difference. At IU Bloomington, 69% of students receive grants and scholarships, compared to 42% at Purdue’s main campus. IU Bloomington students are also more likely to receive institutional grants and scholarships.
On average, students at IU Bloomington received $435 more in grant and scholarship aid in the 2019-2020 school year than students at Purdue West Lafayette.
The Purdue Promise program is making a much bigger difference. It’s actually making college affordable for students who otherwise would not have had the opportunity to go.
The program is designed for recipients of the 21st Century Scholarship for low-income Indiana residents, which pays for college tuition. The Purdue Promise covers financial needs that remain after the 21st Century Scholarship and other aid are applied, including room and board, books and transportation. It also provides success coaching.
These students are far more likely to be first-generation college students than their peers. About 72% of Purdue Promise students were first-generation college students in fall 2024 — more than three times the rate of other undergraduate Indiana residents.
A majority of Purdue students once graduated with debt. Now, less than 40% do.
Nonresidents inflate housing costs
There’s a big problem, though. As of this month, the average rent for a one-bedroom apartment in West Lafayette is $1,453, according to Apartments.com. That would exceed the value of their Purdue Promise award even if students somehow found an off-campus apartment that allowed them to rent for nine months out of the year.
That’s likely why Purdue recommends Purdue Promise students live in one of the cheaper student housing options. Purdue, though, has had a student housing shortage for years. Parents of admitted students are still worried about it. Demand exceeds supply.
First-year students are guaranteed a spot. A majority of Purdue’s first-year class is from out of state. Since it’s impossible for them to commute from home to their campus, that means a good chunk of student housing is likely taken up by out-of-state students.
While out-of-state students may pay higher tuition, they pay the same for housing while driving up demand and costs for everyone else.
If Purdue Promise students can even find housing, the costs of housing, a meal plan and groceries stretch their aid to the limit.
Universities have limited capacity
Only a limited number of students can enroll at a university before its infrastructure is strained, making things more expensive for everyone.
Giving a seat at a university to a nonresident rather than a resident, therefore, directly takes away future revenue from the state. Nonresident students are far less likely to remain in the state after graduation. Bachelor’s degree recipients add around $700,443 more than high school graduates to the economy by spending more and paying more taxes, according to the Indiana Commission for Higher Education.
That leaves the state with less revenue to fund Purdue and the 21st Century Scholars program.
Indiana might not use additional revenue appropriately. It might continue to cut higher education funding. At the very least, though, 21st Century Scholars will likely continue to grow after a recent law made admission to the program automatic. That’s great news for Indiana residents.
Unlike using wealthy out-of-state students to subsidize an across-the-board tuition freeze, the 21st Century Scholars program stays true to the fundamental purpose of Indiana universities — serving Indiana students.
Contact Jacob Stewart at 317-444-4683 or jacob.stewart@indystar.com. Follow him on X, Instagram, Facebook and TikTok.
This article originally appeared on Indianapolis Star: Out-of-state students make Purdue less affordable | Opinion
Reporting by Jacob Stewart, Indianapolis Star / Indianapolis Star
USA TODAY Network via Reuters Connect
By Jacob Stewart, Indianapolis Star | USA TODAY Network
