Apr 30, 2026
In what may be a first, a viewer wrote to The Ramsey Show explaining that he's considering getting divorced — not because he wants to end the relationship, but because the couple want to save on college tuition.
Dave from Massachusetts asked co-hosts Rachel Cruze and Dave Ramsey whether he and his wife should get a divorce because they could save more than $100,000 on their youngest child's tuition (1).
Advertisement
Their oldest child is currently attending a state school, for which they're paying in-state tuition.
But their youngest wants to go to school out of state and the couple happens to own a second home in that state. So, Dave's question for Cruze and Ramsey was: "Should my wife and I get a divorce so we can change one of our permanent residences to that state and keep the other permanent residence in our state?"
He goes on to say, "My wife and I love each other very much and the paperwork wouldn't change our relationship."
So, has this couple found a hack to save tens of thousands of dollars?
Dave Ramsey doesn't think so.
Just say no
The co-hosts were not on board with Dave from Massachusetts's plan to save on tuition. Cruze was to the point: "I think if you can't afford the out-of-state tuition, y'all can't afford the college."
Ramsey agreed: "Here's an idea: Tell your kid no. Oh, there's a shocking concept," he quipped.
Advertisement
"Dude, you're weird. I mean, who talks about divorcing their wife to get in-state tuition?" Ramsey said.
While both Cruze and Ramsey agreed that this wasn't a good plan, they did split on whose fault it was. Ramsey pinned it on the "spoiled brat," while Cruze thought it was the father's fault.
"Don't you blame this on that 18-year-old. This is the dad's idea," Cruze said, to which Ramsey replied, "I'm going to blame it on the whole dysfunctional family."
Ramsey also joked that the father shouldn't tell his wife about this plan. "That would be danger. You could wake up dead," Ramsey said.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Fraud is no joke
All jokes aside, a plan like this does have the possibility of putting a family at risk. While Dave from Massachusetts may currently be thinking about all those zeroes in the cost of out-of-state tuition, he's likely not taking into account all the things that could go wrong.
Firstly, carrying out a plan such as this would be fraud, if the person claiming to reside in the state doesn't actually move and take up residence in the second home.
Advertisement
And, even if that parent does move, establishing that you live in-state may require more than simply putting an address on a college application. Residency requirements will likely mean that you have to live in the state for a minimum amount of time before applying to school, often 12 consecutive months, but potentially longer; institutions may have their own guidelines as well (2).
Lying about residency could have serious consequences. A Virginia man was charged in 2014 with multiple felonies after investigators said he lied about being a Georgia resident when he applied for his daughter's tuition. Police said the man paid back more than $37,000 that he'd saved by paying in-state tuition (3).
If you are looking for ways to save money on out-of-state tuition, look into whether the school you're interested in offers a regional compact, also known as a tuition reciprocity program (4).
These programs can offer lower tuition rates for out-of-state students who live in the same region as a school, or for programs that aren't available in a student's home state. Examples are the Western Undergraduate Exchange, Academic Common Market, Midwest Student Exchange Program and the NEBHE Tuition Break.
When it comes to paying for tuition, long-term planning and saving can go a long way. According to the National Center for Education Statistics, the average cost in the U.S. for undergraduate tuition and required fees in 2022-23 for a four-year public school was $9,750 for in-state students and $28,297 for out-of-state students (5). At nearly-tripled the cost, it may be worth doing a detailed cost-benefit analysis of what an out-of-state education can truly offer over and beyond what's available for less, closer to home.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
YouTube (1); CollegeXpress (2),(4); Jacksonville.com (3); National Center for Education Statistics (5)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
