This bill mandates that public colleges receiving federal aid must offer in-state tuition rates to qualifying residents of Guam, the Northern Mariana Islands, American Samoa, and the U.S. Virgin Islands.
James (Jim) Moylan
Representative
GU
This bill amends the Higher Education Act of 1965 to ensure that eligible residents of Guam, the Northern Mariana Islands, American Samoa, and the U.S. Virgin Islands receive in-state tuition rates at public colleges and universities that accept federal student aid. To qualify, students must be residents of these territories and be U.S. nationals. This provision mandates that participating institutions treat these students the same as their own state residents for tuition purposes.
Tuition Equity Bill Mandates In-State Rates for US Territory Residents at Public Colleges
This proposed legislation aims to level the playing field for students from four U.S. territories by requiring public colleges and universities that accept federal student aid to charge them the same tuition rate as residents of the institution’s home state. Essentially, if you’re a qualified student from Guam, the Commonwealth of the Northern Mariana Islands (CNMI), American Samoa, or the U.S. Virgin Islands (USVI), you would no longer be hit with the massive out-of-state tuition bill when attending a public university in, say, California or Texas. The bill achieves this by amending the Higher Education Act of 1965, adding this requirement as a condition for institutions to continue participating in federal student aid programs (Section 487(a)).
The Fine Print: Who Qualifies and Why It Matters
To qualify for this in-state rate, a student must meet two criteria, defined as a “covered individual” in SEC. 1: they must be a resident of one of the four specified territories, and they must be a United States national. This is a big deal because out-of-state tuition can easily triple or quadruple the cost of attendance. For a student from American Samoa looking to attend a public university on the mainland, this change moves a four-year degree from potentially unaffordable to highly accessible. It’s a direct attempt to provide educational equity by removing one of the biggest financial barriers for residents of these territories.
The Real-World Impact on Budgets
Think about the average family budgeting for college. If a public state university charges $10,000 a year for in-state tuition but $30,000 for out-of-state, this bill saves a qualifying student $80,000 over four years. That’s the difference between taking out six-figure loans and managing a reasonable debt load, or perhaps even attending college at all. This provision is designed to make higher education a viable option for students who previously had limited choices due to geography and cost.
Where the Rubber Meets the Road for Universities
While this is a clear win for students, there’s an implementation challenge for the public universities themselves. Many state universities rely heavily on the higher revenue generated by out-of-state tuition to balance their budgets. If a university currently enrolls a significant number of students from these territories and charges them the higher rate, they will see a reduction in that specific revenue stream. While the overall impact is likely minor for large institutions, those heavily dependent on non-resident tuition might need to adjust their financial models. The bill forces institutions to absorb this cost reduction to maintain access to the crucial federal student aid programs, which include Pell Grants and federal loans.