The Wall Street Journal Classroom Edition

It's Cold, but It's Hot
Why North Dakota is a popular destination for out-of-state college students

ARTICLE
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LESSON

As a high school senior, Diva Malinowski took a coast-to-coast tour of 10 public universities, bearing acceptance letters from each.

She fell in love in Fargo.

"The minute I stepped onto campus, I knew that North Dakota State was for me," says Ms. Malinowski, a 21-year-old senior who went to a private high school in Connecticut.

Many more are following in her footsteps. North Dakota is fast becoming a popular destination for college students from around the country. Out-of-state students account for about 55% of the 14,500 enrolled at North Dakota State University, as well as at similarly sized University of North Dakota in Grand Forks. Nonresident students at North Dakota's 11 public colleges constitute a higher ratio than in almost every other state.

High school juniors and seniors scouring online college guides find that North Dakota universities are inexpensive and well-regarded, with modest-size classes typically taught by faculty members rather than adjuncts or graduate students.

"I found it online, showed it to my Dad and he was impressed," says California resident Samantha Carlson, who graduated in May from North Dakota's Valley City State University. For Californians, North Dakota colleges cost about $10,000 a year in tuition and fees, compared with about $12,000 in the University of California system.

Many students hail from states far beyond the region. Floridians numbered 182 in 2010, up from 37 in 2000. During the same period, international enrollment rose to 1,600 from 1,125.

"My roommates are from Mongolia and South Korea," says Delaney McCormack, a Kansas resident studying at North Dakota State.

This isn't happening by accident. A dozen years ago, university officials noticed an accelerating decline in the number of state high school graduates. Faced with the prospect of closing academic departments or entire schools, university
leaders instead moved to attract more students, particularly from out of state.

The state poured money into improving academics. Its annual research expenditures have climbed to $120 million from $45 million a decade ago. At the same time, it was able to keep tuition low, thanks to an oil boom that has produced more revenue for the state.

To recruit in other states, both UND and North Dakota State advertise in magazines and on cable channels such as Comedy Central. Each also has stationed a full-time recruiter in their largest out-of-state market, Minnesota's Twin Cities.

The result: Even as the number of North Dakota high school graduates fell over the past decade, enrollment at public colleges surged 38%. Leading that growth was a 56% jump in nonresident students. "For anyone who wants to be at a place on the rise, this is it," says NDSU President Dean Bresciani.

Traditionally, states charge nonresidents up to three times as much for tuition and fees. That revenue source is especially tempting now as states cut budgets for higher education. Universities are intensifying their efforts to recruit these students.

The battle could be fiercest for a type of enrollee who until now has gone largely unnoticed: the out-of-state bargain hunter. And no place has proved more popular with this segment than North Dakota. The highest-priced public colleges in North Dakota—UND and NDSU—officially charge nonresident students about $17,000 in tuition and fees. That's half what nonresident students pay at many public colleges elsewhere and less than some colleges charge their in-state students.

Competing with North Dakota on the basis of price is difficult. As other states battle budget shortfalls, oil revenues this past year enabled North Dakota to run a billion-dollar surplus, and increase funding to the university system by 13.4%.
That followed higher-education budget increases of 20.6% in 2009 and 13.5% in 2007.

ADDITIONAL READING

"Recruiters at Black Colleges Break From Tradition" looks at why many of the nation's historically black colleges are wooing non-black students.

"For Student Borrowers, a Hard Truth" is a SmartMoney article that explains the consequences of defaulting on student loans.

WEB RESOURCES

North Dakota State University

University of North Dakota

North Dakota university System

National Center for Public Policy and Higher Education

College Board report on college pricing.

OBJECTIVE
Learn why universities want out-of-state students

OVERVIEW
North Dakota--a state that ranks 48th in attracting tourists and struggles to keep its young people from fleeing to warmer or more exciting places--is fast becoming a popular destination for college students from around the country.

STANDARDS
NBEA: economics and personal finance, career development, marketing; NCSS: people, places and environment, individuals, groups and institutions; NCTE: diversity, communication

REVIEW
Read the article "It's Cold, but It's Hot" and answer these questions:

1) Why are North Dakota universities attracting more out-of-state students?

2) The North Dakota university system has been able to keep costs low for out-of-state students because unlike states battling budget shortfalls, North Dakota is running a billion-dollar surplus thanks to oil reserves. This has increased funding to the university system by 13.4%. There were also higher education funding increases in 2009 and 2007.

3) To expand their recruiting efforts, the University of North Dakota and North Dakota State University have advertised on Comedy Central and stationed a full-time recruiter in their largest out-of-state market, Minnesota's Twin Cities..

ACTIVITY IDEAS

• More than half (about 55%) of students at North Dakota State University and University of North Dakota are from out of state. In small groups, choose one public university in your state. What percent of students are from out of state? Where do students come from? As a class, discuss the benefits and drawbacks of recruiting nonresident students to state schools. Consider the impact on residents and nonresident students, the university, and residents of the state as a whole.

• Research the costs of attending a North Dakota university and another out-of-state public university of your choice (be sure to include all the financial factors, including additional travel expenses). How much cheaper is it to attend college in North Dakota? How much would tuition factor into your decision about where to go to school? Discuss as a class.

• In small groups, research and debate the statement: Public universities should reserve a majority of their spaces for residents.

• As a class, create a list of factors that people consider when they choose a university. Include the reasons that people cited for attending a North Dakota school. Then, create a survey to give to students in your high school about the factors they're considering as they think about college. As a class, analyze the results. What are the most important factors? What aspects surprised you?

• The article mentions the variety of reasons students choose North Dakota over schools in their home states. Choose one public university that you're considering. Then, choose one university in North Dakota. Compare the two. Consider: cost, financial aid, class size, research, field of study, and social and cultural opportunities. Write a two-page essay that analyzes the importance of various aspects of college and indicate which are most important to you. After comparing your choice with North Dakota, have you adjusted any of your considerations? Would you consider a school that's "off the beaten path"? Why or why not?

• College costs are on the rise, but they have been for decades. And, the concern about paying for college has been a consistent news headline. Research and read five news articles about college prices. What trends do you see? What concerns have emerged in the last two years? How does the trend in North Dakota fit into the bigger picture? Discuss as a class.