Understanding the transfer limits of a degree is really useful for resourceful high school planning. Does your future college accept 15 credits or 51? Knowing the answer is worth tens of thousands of dollars.
The transfer limits are determined, in part, but an institution’s “residency requirement,” also called “institutional credits.” These are set at a high level and adopted system-wide. Residency requirements are non-negotiable. While a credit’s acceptance may be negotiated, you’ll never be able to exceed the residency limit, so understanding this number can give you a really good understanding of whether or not you can win a fight before you even begin.
Residency Requirement / Institutional Credit
What is it?
Simply put, the phrase “residency requirement” in this context is how many credits (or a percentage of credits) you’ll need to earn directly with a college in order to earn a credential.
Every regionally accredited college or university in the country has a residency requirement. There are no exceptions to this policy.
It is impossible to earn a certificate or degree from an accredited college using only credit you’ve outsourced, credit by exam, AP credit, or any other form. In other words, you always have to complete some amount of credit with the college.
PRO TIP: If you find a college that allows you to outsource 100% of the degree, you’re either not at a legitimate website or you’ve found a diploma mill. You can (and should) confirm every institution’s legitimacy here: https://ope.ed.gov/dapip/#/home
Start at any institution’s website and find it’s policy. You may find it on the website or in the academic catalog. Here is a real example from the University of North Carolina Charlotte. See if you can identify the residency requirement.
The policy indicates 25% of a degree must be completed in-house at UNC Charlotte. For a 120-credit degree, you’ll multiply by .25 to determine that 30 credits must be earned at UNC. That number is your starting point, and if you keep reading, you’ll learn there are two additional rules (last 12 in the major / 6 in the minor) as well as a GPA requirement.
In this example above, if 30 credits must be completed at UNC, then no more than 90 do not. This means that even if your teen earns credit that is fully and perfectly transferable, the institution will not accept more than 90 credits. Period. You may have some flexibility in the 90, but you’ll have no flexibility in the last 30.
As you explore residency requirements, remember the total percentage of residency + outsourced credit will always equal 100%.
Another Example of a Residency Requirement
Liberty University (Residential or Online): 25% residency required
Associate Degree (60 credits)
- 25% residency = 15 credits must be taken at Liberty
- 75% outsourced = 45 carefully planned credits may be outsourced
Bachelor’s Degree (120 credits)
- 25% residency = 30 credits must be taken at Liberty
- 75% outsourced = 90 carefully planned credits may be outsourced
Why Not 100% Residency?
If a college has 100% residency, that means your student will pay full price rack rate tution for every credit in the degree. The more you can outsource, the more flexibility you have to use AP exams, CLEP exams, and dual enrollment. These types of credits are pennies on the dollar, so carefully planned credits can shave tens of thousands of dollars on your student’s degree cost. In the Liberty example above, it is possible to accumulate 90 carefully planned credits at Liberty for about $3,000. When done well, a student will apply for admissions and graduation in the same academic year – leaving them to only pay full price for 1 year. THAT is how you resourcefully plan and make college affordable!
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I’ve always been willing to find creative ways to get through college without debt, and my family is on degree #14 without debt. You can do this too!
