InState Residential specializes in helping out-of-state students attending public colleges and universities in Texas qualify for in-state tuition. Our experts will walk you through every step of the process – from identifying and purchasing residential real property, to taking the appropriate steps to meet residency requirements, to petitioning your college or university for in-state residency – you can rely on us.
Establishing Texas residency is a legitimate and legal way to qualify for in-state tuition by establishing Texas residency. Texas Education Code (TEC) Section 54.052 authorizes persons classified as Texas residents to pay in-state tuition, a rate of tuition that is generally three times lower than for those classified as nonresidents. Texas does not have a state income tax; instead, tax revenue is generated by property taxes. By incentivizing out-of-state families to invest in Texas, the tax base grows, and the property values rise. It’s a win for everyone involved. The University’s Office of Admissions Texas Residency page details Texas residency classifications and the requirements for establishing domicile in Texas as permitted by Texas law
Generally speaking, there are three steps:
1. You purchase residential real property in Texas in your student’s name ONLY.
2. You establish the property as your student’s primary residence.
3. After 12 months, you apply for reclassification at the student’s college or university.
Of course, there are other aspects to coordinate within each of these steps, and InState Residential has ushered many families through the process. We are with you through the entire journey, from choosing the property, negotiating the purchase, closing the deal, all the way to qualifying for in-state tuition rates. InState Residential is your Texas residency expert.
According to the Texas Higher Education Coordinating Board, the number of students who met statutory requirements for establishing Texas resident status for in-state tuition under TEC 54.052(a)(3) is typically about about 1.5 percent of the total enrollment at Texas public institutions of higher education. Given the relatively small percentage of students obtaining Texas residency under this program, we do not anticipate a threat to the statute. Secondly, this is a state law, not a university decision. The Texas legislature only meets every other year, so any changes to the existing law would require a very long lead time. If you are reading this, you would very likely be grandfathered under the current requirements.
Of course! We are happy to coordinate a conversation with past clients that we have helped. You’ll find out that they’re just like you – and could not be happier about savings tens of thousands of dollars on a quality education.
The primary “return on investment” you will receive is the tens of thousands of dollars you will save each year on tuition. But beyond that, in our experience Texas college towns have experienced stable demand and appreciating prices for many years. We don’t see any market forces in play currently that would alter that dynamic. Of course, real estate markets have inherent risks, and there is no guarantee that you will sell your property for more than the purchase price. However, InState Residential has helped many families sell properties once their students have graduated. The vast majority of families have realized a gain on those subsequent sales.
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