Classifying by Residence for Tuition Purposes SECTION NO. 3

Effective Date: September, 1985

INITIAL CLASSIFICATION

A student admitted to initial enrollment in an institution (or permitted to re-enroll following an absence from the institutional program which involved a forma withdrawal from enrollment) shall be classified by the admitting institution either as a resident or as a non resident, for tuition purposes, prior to actual enrollment. Particular officials or offices shall be designated by the chief executive officer of the institution to evaluate all such initial-classification cases and to assign an appropriate classification consistent with the requirements of State law and provisions of this manual. G.S. 116-143.1 specifies certain information that must be obtained from the applicant for in-state status.

However, among applicants the information needed to make a reliable determination may vary greatly, and the suggested common information form (Appendix B hereof) may elicit far more than is needed in one case and prove inadequate as formulated in another. Institutional officials, though, are cautioned that a question or inquiry that deletes substance of Appendix B may not prove adequate to substantiate to the satisfaction of the State Auditor a given classification and is likely to cause remand for further inquiry by institutional officials of a classification if appealed by a student to the State Residence Committee. On this point, it should be remembered that the emphasis of G.S. 116-143.1, especially subsection (d), is on thoroughness of inquiry, not quickness.

SUBSEQUENT CLASSIFICATION INQUIRIES: RECLASSIFICATION

A residence status classification once assigned (and finalized pursuant to any appeal properly taken) may be changed thereafter only at intervals corresponding with the established primary divisions of the academic calendar of the institution, viz., at the beginning of a semester, quarter or otherwise denominated basic interval of the academic calendar.

No change in residence status classification for tuition purposes (and thus no change in applicable billing rates) shall be effected during such a semester, quarter or term, with resulting increases or decreases in the tuition obligation prorated for a portion of such semester, quarter or term. Reclassification may be appealed by either the student or the institution, under the rules set forth in Section F, below.

If the reclassification inquiry (or any appeal taken in connection therewith) is not completed prior to commencement of the next succeeding pertinent semester, quarter or term, the pre-existing classification shall prevail for purposes of tuition billing, with the understanding that a final conclusion in the classification or reclassification shall result in appropriate prompt supplemental billing for any underpayment or refund for overpayment, for the intervening term(s).

An institution is not required to investigate independently to determine whether there may have been a change in operative facts relative to an individual student's existing resident status. Under the burden of conscientious good faith discharge of its administrative responsibilities, however, an institution has the responsibility to investigate a student's resident status where is has reason to believe from relevant information that there has been a change in operative facts relative to an individual student's resident status. The need to make such an inquiry rests upon a finding by the institution that the likelihood of a change in operative facts is substantial.

Where the information comes from a third party, the institution may weigh the substantiality of the information in determining whether to investigate. The institution shall provide to each student at the time of and in connection with the transmission to the student of each periodic bill for tuition charges a notice of the circumstances under which and the time at which a change in classification may occur. The notice shall be similar to that set forth in Appendix C.

This section B shall not be construed to prohibit either an applicant for residentiary classification nor an institution of higher education from seeking reclassification with respect to a term or semester for which a residentiary determination has already been rendered, except as limited by the provisions of paragraphs 1 and 2, below.

Changes from Non Resident to Resident Classification

If a student is classified initially as a non resident, it is the responsibility of the student thereafter to petition the responsible official or office for reclassification to resident status if the student believes that subsequent changes in facts justify such a reclassification. The institution will not assume responsibility for initiating such an inquiry independently. The student may file such a petition at any time after expiration of the twelve month period as a legal resident (domiciliary) acquired by any of the means provided by G.S. 116-143.1.

The change in classification, if deemed to be warranted, shall be effective at the academic term next following the date of application for reclassification, provided, that a change in residence classification may be retroactive to the beginning of an academic term during which application was made if the twelve month period is found to have been satisfied as one of the beginning of that term. No changes to in-state status may be obtained by a student for an academic term that has ended before the date of the petition for reclassification unless a change in residence law or policy is the cause for the reclassification petition and that change was made retroactive in effect to a point in time preceding the expired academic term(s).

Changes from Resident to Non Resident Classification

If a student is classified initially as a resident, again, either the student or the institution thereafter may initiate a reclassification inquiry, based on changes in facts which would appear to justify such an inquiry. Again, it is the responsibility of the affected student who is aware of changes in facts which would serve to apprise a reasonable person that there was reasonable doubt about the validity of the existing residential classification to file a petition for reclassification.

Failure of a student during a period of more than one semester, quarter or term from the date of adverse change in operative facts to file such a petition under the circumstances prescribed shall be cause for appropriate disciplinary action against the student by the institution, including, but not necessarily limited to, cancellation of registration and enrollment. The institution may initiate the reclassification inquiry independently at any time after the occurrence of the material events or changes in facts which give rise to a reasonable doubt about the validity of the existing residential classification.

Erroneous classifications, erroneous notices concerning classification and fraudulent applications

The substantive propriety of a residence classification may be tested through the appeal remedies described in Section F, below. Such residence determinations if reversed on appeal may be described as having been erroneous classifications. Erroneous classifications are to be distinguished, however, from proper (or at least undisputed) classifications that are communicated erroneously to the classified student or within the classifying institution; these communications are erroneous notices concerning classification. Such erroneous notices may be letters announcing a residence status determination, tuition billing notices or institutional directives or notations for internal use of the classifying institution. Erroneous notices are by definition written communications.

• Where a student, having been classified (i.e., found) a nonresident for tuition purposes, receives from an institutional officer an erroneous notice announcing the student to be, or treating the student as, a resident for tuition purposes, the student shall not be responsible for paying the out-of-state tuition differential for any enrolled term commencing before the classifying institution gives to the student actual or constructive notice in writing or the erroneous nature of the prior notice.
  
  
• Where a student has been classified as a resident for tuition purposes following submission by a student of falsified residentiary information or after the student has knowingly withheld residentiary information, the application of the student for in-state tuition status is fraudulent. An institution may re-examine an application suspected as being fraudulent, make a residence status redetermination thereof, and change the status of the student, if warranted, retroactively to the beginning of the term with respect to which the fraudulent application had originally been made. Such a retroactive change would make the student responsible for the out-of-state tuition differential for the enrolled term(s) intervening between the fraudulent application and its discovery.

TRANSFER STUDENTS

When a student transfers from one public institution of higher education in North Carolina to another, he or she shall be treated as a new student by the institution to which the student is transferring and shall be assigned an initial residence classification for tuition purposes consistent with the requirements of Section A, above.

The transfer into or admission to a different component of the same institution (viz., from an undergraduate to a graduate or professional program) shall not be construed as a transfer from one institution to another and, thus, shall not by itself require a reclassification inquiry unless (1) the affected student requests a reclassification inquiry or (2) the transfer or enrollment occurs following the elapse of more than one quarter, semester or term during which the student was not enrolled as a student.

MULTI-CAMPUS APPLICATIONS

RESPONSIBILITY FOR SUPPLYING INFORMATION

An applicant or enrolled student subject to either a classification or reclassification inquiry is responsible for supplying all information request by the institution in connection with the classification process [See G.S. 116-143.1(d).] Failure to comply will all requests for information prescribed by the institution shall be attended by the following consequences:

1. In the context of an initial classification inquiry affecting a prospective enrollee, the student shall be classified a nonresident for tuition purposes;
   
   
2. In the context of a reclassification petition initiated by the student to acquire a change from non resident to resident status, the student shall continue to be classified as a non resident for tuition purposes;
   
   
3. In the context of a reclassification inquiry anticipating a change from resident to non resident status for tuition purposes, the student may be disciplinary action, including, but not limited to, cancellation of registration and enrollment or dismissal.

Knowing falsification of any response made to any institutional request for information may subject the individual to disciplinary action, including dismissal from the institution, in the discretion of the institution.

APPEALS

The decision of the officials or office of the institution responsible initially for residence classification or reclassification decisions may be appealed by the affected individual as follows:

1. To the chief executive officer for the institution, or the officer's delegate (who may be either an individual official or a committee designated by the chief executive director), pursuant to such rules and procedures as may be prescribed by the chief executive officer; if not satisfied with the disposition of the complaint, the individual may then appeal.
   
   
2. To the State Residence Committee pursuant to such rules and procedures as that Committee may prescribe.

The sole grounds for appeal to the State Residence Committee from the institutional decision on appeal shall be:

1. That the institutional decision was made in disregard of or mistake with reference to the requirements of law or Manual policy;
   
   
2. That Manual provisions as currently stated do not address a legal issue presented by the institutional decision;
   
   
3. That Manual provisions as currently stated are at variance with subsequently developed case law pertinent to the institutional decision;
   
   
4. That the institutional decision is not supported by an evidentiary record providing a reasonable basis for the conclusion reached or
   
   
5. That the institutional decision on appeal was rendered after review by institutional appeal, as provided for hereinafter, and that the contrary, initial determination of resident status when viewed in light of the evidentiary record as augmented by review upon institutional appeal has a reasonable basis in the total evidentiary record.

Final disposition of an appeal by the State Residence Committee shall be deemed to exhaust the administrative remedies of the appellant with respect to the institutional classification or reclassification.

The decision of the official or office of the institution responsible initially for residence classification or reclassification decisions may be appealed by the institution to an institutional appeals agent or body designated by the institution's chief executive officer. Only the institution's chief executive officer or his or her duty appointed agent shall have the authority to enter an institutional appeal.

If an initial residence classification is appealed by the institution to the institutional appeals agency and the initial residence classification is confirmed upon that appeal, the initial classification may not be further appealed by the institution to the State Residence Committee. This limitation upon institutional appeals shall not prohibit institutional inquiry to the State Residence Committee for purposes of general advice or other assistance.

STATE RESIDENCE COMMITTEE

Composition

The State Residence Committee shall consist of one individual appointed by the President of The University of North Carolina from the staff of the Office of the General Administration of the University; one individual appointed by the President of the Community College System from the staff of the System; six institutional representatives appointed by the President of The University; six institutional representatives appointed by the President of the Community College System; and one member who shall be an attorney from State government and appointed by the two Presidents.

Responsibilities

The responsibilities of the State Residence Committee shall be:

1. To decide cases appropriately appealed to it from a State institution of higher education;
   
   
2. To evaluate the administrative practices and substantive rules associated with implementation of State law relating to residential classification for tuition purposes and to make recommendations, respectively, to the Board of Governors of The University of North Carolina and to the State Board of Community Colleges concerning any perceived need for changes in applicable law or administrative policies and procedures associated with the responsibility of classifying students by residence for tuition purposes; and
   
   
3. To serve as a source of general advice to and sharing of information with and among affected institutions of higher education concerning residence questions.