State Residency Classification for Tuition Purposes Training

State Residency Classification for Tuition Purposes Training 2010 Lesson 2 Definition of Terms Norma Houston UNC General Administration North Carolina State Residence Classification Manual A Manual to Assist the Public Higher Education Institutions of North Carolina in the Matter of State Residence Classification for Tuition Purposes

This Lesson Covers: • Definitions of terms used in the Manual. • Understanding these terms will enable campus administrators make classification decisions consistent with state law and public policy. Lesson 2: Definition of Terms

“Bona Fide” In good faith with earnest intent. A person must demonstrate that he or she has established a bona fide, as opposed to a temporary, domicile when seeking residency classification. Establishing domicile in North Carolina just to become eligible for in-state tuition is not a bona fide domicile. Lesson 2: Definition of Terms

“Burden of Proof” The responsibility borne by the applicant to convince the institution of higher education, by a preponderance of the evidence, that the student is a bona fide domiciliary for tuition purposes. This burden may be met by providing tangible evidence to support relevant conduct of legal residence and its duration as may be required by officials of an institution of higher education. Lesson 2: Definition of Terms

“Capacity” Legal ability to establish residence unimpeded by other factors, such as age or non-immigration status. For purposes of legal residence for tuition purposes, capacity includes the ability to remain in North Carolina permanently through one’s own financial resources. Lesson 2: Definition of Terms

“Dependent” A person defined under federal law as a “qualifying child” or “qualifying relative” for income tax purposes. • To claim someone as a dependent, the dependent must have legal status in this country, Canada, or Mexico for some part of the year. • A spouse is never a dependent. • IRS regulations should be consulted! Lesson 2: Definition of Terms

“Dependent” (continued) • To be a dependent for income tax purposes, specific requirements for the follow factors must be satisfied: • Relationship • Age • Residence • Level of financial support • Tax Filing Status Lesson 2: Definition of Terms

“Dependent” (continued) A student may still be financially dependent on his or her parents even if the parents don’t claim the student as a dependent for income tax purposes. Financial independence must be established as part of the residence classification process. Lesson 2: Definition of Terms

“Domicile” A person’s true, fixed, and permanent home and place of habitation of indefinite duration (for an indefinite period of time);it is the place where he or she intends and is able to remain permanently and to which, whenever the person is absent, he or she expects to return. A person may have more than one residence, but may have only one domicile. For purposes of the Manual, “domicile” is synonymous with “legal residence.” Lesson 2: Definition of Terms

“Domicile” (continued) • Domicile may be established by: • Birth • Law • Choice • Residence for tuition purposes is not guaranteed – it must be established by the student. • The burden of proof is on the student. Lesson 2: Definition of Terms

“Domicile” (continued) Evidence of domicile includes (but is not limited to): Where the student lives Voter registration and voting Driver’s license and vehicle registration Employment and payment of taxes Ownership of real property There is no “residence checklist” – each application is considered on its own merit. Lesson 2: Definition of Terms

“Domiciliary” A person who is a legal resident of (is domiciled in) North Carolina. For purposes of the Manual, “domiciliary” is synonymous with “legal resident.” Lesson 2: Definition of Terms

“Enrollment” The status of being registered as a part-time or as a full-time student for an academic term that has begun. Lesson 2: Definition of Terms

“Evidence” Documents and other proof verifying conduct that is provided to officials of an institution of higher education regarding legal residence and its duration necessary to prove that an applicant is entitled to in-state tuition. Lesson 2: Definition of Terms

“Independent” A person who is legally entitled to claim, and in fact does claim, himself or herself on income tax returns, is not claimed by another person as a dependent on that person’s income tax return, and possesses sufficient funds to live and pay tuition and fees at the person’s current residence classification without outside financial assistance. Lesson 2: Definition of Terms

“Independent” (continued) • Generally, students who are financially dependent on parents who are not domiciled in North Carolina will not be eligible for in-state tuition. • A student may still be financially dependent on his or her parents even if the parents don’t claim the student as a dependent for income tax purposes. • Failure to claim a student as a dependent for income tax purposes does not automatically make the student “independent” from his or her parents. Lesson 2: Definition of Terms

“Independent” (continued) • Factors relevant to determining whether a student is “independent” include: • Employment, income, & assets • Level of financial support from parents • Level of outside financial assistance from other sources • Status for financial aid purposes • There is no “independence checklist” – each application must be considered on its own merit. Lesson 2: Definition of Terms

“Initial Classification” The first classification of residency for tuition purposes assigned to an applicant for admission to a public institution of higher education based on information received as a part of the application for admission to that institution. Initial classification decisions by one institution are not binding on another institution, nor are initial classification decisions at one academic level binding on another academic level within that same institution. Lesson 2: Definition of Terms

“Institutions of Higher Education” Institutions, both public and private, that offer post-secondary instruction in North Carolina, including all UNC constituent institutions and all Community Colleges. Independent colleges and universities in North Carolina also follow the definitions of residency in the Manual for purposes of administering state-funded assistance. Lesson 2: Definition of Terms

“Legal Guardian” A person who is court-appointed to act in the place of an individual’s parents (usually referred to as a “guardian of the person” or “general guardian”). A guardianship ends when the person reaches age 18 or is otherwise emancipated. “Custody” or “legal custodian” is not the same as legal guardian. Lesson 2: Definition of Terms

“Legal Residence” A person’s legal residence is the person’s domicile. For purposes of the Manual, “legal residence” is synonymous with “domicile.” Lesson 2: Definition of Terms

“Legal Resident” A person who is a domiciliary of (is domiciled in) North Carolina. For purposes of this Manual, “legal resident” is synonymous with “domiciliary.” Lesson 2: Definition of Terms

“Marriage” The legal union of a man and a woman in accordance with the laws of the State of North Carolina. North Carolina law defines marriage as being between a man and a woman. North Carolina does not recognize marriages between persons of the same gender performed in another state even if those marriages are legally valid under the laws of that state. Lesson 2: Definition of Terms

“Minor” A person under the age of eighteen (18) years. A person is no longer a minor on the date of the person’s eighteenth birthday. Generally, a minor is presumed to have the same domicile as that of his or her parents or legal guardians. Lesson 2: Definition of Terms

“Misrepresentation” A false and fraudulent misstatement of fact. If an applicant or someone acting on the applicant’s behalf knowingly makes a misrepresentation in connection with a state residency application or appeal, that misrepresentation could lead to a misdemeanor charge. Lesson 2: Definition of Terms

“Preponderance of Evidence” The greater weight of the evidence; more probable than not; proof which leads one to find that the existence of the contested fact is more probable than its nonexistence. This standard is less stringent than “beyond a reasonable doubt.” It is not necessarily established by a greater number of witnesses testifying to the fact, but instead by evidence that has the most convincing force. Lesson 2: Definition of Terms

“Presumption” A legal inference used to place the burden of proof and of producing supporting evidence on one party to a proceeding in order to overcome that presumption. Under North Carolina law, a minor’s domicile is “presumed” to be that of his or her living parents or legal guardian. Lesson 2: Definition of Terms

“Prima Facie” At first appearance or first view – before investigation. Under North Carolina law, the legal residence of the applicant’s parents shall be prima facie evidence of the applicant’s legal residence. Lesson 2: Definition of Terms

“Reclassification” The process of an applicant's formal request to review pertinent residentiary facts to determine the correctness or an update of the initial classification of residency for tuition purposes by public institutions of higher education. Lesson 2: Definition of Terms

“Residence” A place of abode, whether permanent or temporary. “Permanent residence” means the legal residence or domicile, whereas “temporary residence” means one’s abode for an undetermined or temporary duration. A person may have many residences but only one permanent, legal residence (domicile). Lesson 2: Definition of Terms

“Resident for Tuition Purposes” A person who has established legal residence (domicile) in North Carolina and maintained that legal residence for at least 12 months (365 days) immediately prior to his or her classification as a resident for tuition purposes. The applicant must establish that his or her presence in the State is, and during the required preceding 12 months was, for the purpose of maintaining a bona fide domicile rather than maintaining a temporary residence incident to enrollment in an institution of higher education. Lesson 2: Definition of Terms

“Spouse” A person who is legally married to another person in accordance with the provisions of North Carolina law. North Carolina law defines marriage as being between a man and a woman. North Carolina does not recognize marriages between persons of the same gender performed in another state even if those marriages are legally valid under the laws of that state. Lesson 2: Definition of Terms

“Tuition” The sum charged to students by an educational institution for credit instruction at the time of registration, regardless of the means by which the instruction is delivered. Tuition does not include any other fees charged by the institution of higher education or the costs of textbooks. Lesson 2: Definition of Terms

THANK YOU! Lesson 2: Definition of Terms

State Residency Classification for Tuition Purposes Training