If you graduate from high school in Kalamazoo, Michigan, you are about to get a deal.

Philanthropists will cover 65% of tuition costs at public colleges and universities in Michigan for students who spend at least their high school years in the Kalamazoo Public School district. And Students who go all the way from kindergarten through 12th grade get a free ride.

Why?

The program wants to help produce an educated work-force to boost the economy and attract new homeowners. 

“Kalamazoo sits in western Michigan, a state that led the nation last year in unemployment as auto companies cut jobs amid slumping sales. Michigan’s unemployment rate was 7.2%, compared with the national average of 4.6%. The Kalamazoo area has been hard hit by job cuts at one of its largest employers, drug maker Pfizer Inc. Since July 2005, the company has eliminated 2,000 high-paying research jobs, reducing its staff in the area to less than 3,000.”

But over the past 18 months, with the help of this program Kalamazoo is on the up and up. Four-hundred families from 88 Michigan communities, 32 states and nine foreign countries have moved into the Kalamazoo school district, boosting school enrollment 12% to 11,530 this year from 10,337 in 2005.

Graduation rates have risen, too, jumping 21% to 567 students in 2007 from 467 students in 2005. (The district reports 485 graduates so far for 2008, but the finally tally won’t be known until summer school is over.)

Bills are paid by the program directly to the college. Roughly 1,200 students have taken advantage of the program so far.

Not from Kalamazoo?

Well sit tight, because other communities with bad economies are developing their own plans.

So you want to move out of your parents’ house and go away to college. No kidding.

But moving away from your hometown has a price way beyond no more home-cooked meals and laundry.

Choosing an out of state college can really impact your college costs.

For example, let’s say you live in Wisconsin, and you want to go to Universirty of Rhode Island, your college tuition is going to cost you $23,038. But if you are from Rhode Island, it’s only going to cost you $8,184.

We’ll do the math for you. That’s $14, 854 difference.

Ever wonder why public universities charge higher tuition from out of state?

Well, a large chunk of the money that public colleges get each year for operating costs is paid by the taxpayers in the state where the college is located. So, students who are residents in that state get a cost break and students from out-of-state pay more since they are essentially subsidizing the in-state students.

Colleges want to attract in-state students with a low price tag. They know that those students will often stay in state after graduation and help boost the economy. College graduates are more likely to have good jobs, pay money and contribute to the to the state’s economy.

In some cases, state schools will offer in-state prices to out-of-state students. Often, this happens when a certain program of study is not available in a given state and that state makes arrangements with the public schools of a neighboring state. It can also happen if a state has it as a priority to increase enrollment and wants to attract a broader range of students. For instance, South Dakota recently slashed tuition by almost half for all out-of-state students.

When you prepare for a campus visit, you are probably curious about what the campus, students and food is like, but most of us never think about meeting with the financial aid office.

But knowing that students party it up in their co-ed dorms at night won’t help you much, if you can’t find the cash to attend it.

Your best bet is to visit the financial aid office during your campus tour. That way you’ll have all aspects covered, from academics, to social life, to financial aid.

Start visiting colleges in your junior year at high school. That way you’ll have an idea about financial aid options by the time you have to decide which schools you want to apply to. Call the financial aid office to make an appointment on the day that you are planning to come.

To make the most out of your visit with the financial aid office, here are some good questions to ask:

• Do you require families to file the PROFILE?
• Do you make exceptions to the minimum course load based on health or academic concerns?
• Does grant aid remain constant for all four years?
• Is a stepparent’s income considered when you calculate aid?
• Is an ex-spouse’s income considered when you calculate aid?
• How much grant assistance do you provide to those with an Expected Family Contribution of $0?
• To maintain a grant, how many credits must I take each semester?
• If I receive an outside scholarship, how will it affect my aid, especially in terms of institutional grants and awards?
• Is my institutional scholarship renewable? Can lost scholarship eligibility be reinstated?
• How long will it take to become an in-state student? Do you have state reciprocity agreements? (Reciprocity agreements allow out-of-state students to attend certain programs at in-state prices.)
• Are there a lot of job opportunities on campus?
• Does on- or off-campus employment affect my aid eligibility?
• What is the average debt burden of exiting students and how long does it take most to graduate?
• Do you have any partnerships with discount loan providers?
• Will the school package loans in accommodation of loan forgiveness programs?
• Do you provide aid for summer classes?
• What is your policy on projected-year income?
• Do you apply individual cost-of-attendance adjustments upon request?

You may also want to meet a member of the department that you plan on majoring in. The department might have extra scholarships and extra funding options, so it is always good to make a connection with them.

And don’t forget to take down the names of everyone you met. You’ll want to write them a thank-you note. You may want to meet with them again and it’s good to keep your connections. So make friends with the financial aid office. They just might be your most profitable friendship in college.