Trading in state residency for another

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I think you have a misunderstanding about what it means to establish domicile. It is not necessarily something that you choose, like checking a box on an application.

If you are living and working full-time in your new state, then you are a resident of that state. I suppose an exception would be if you were a student who was also working full-time, but that isn't the scenario you described.

States can have different rules about domicile for the average citizen and for those applying to one of its in-state schools. Sometimes those rules are the same. Sometimes the rules for the applicant are more stringent than those for others. However, it sounds like you've already confirmed with your new state's schools that you are in-state in their eyes.

At this point, it could be illegal for you to indicate to your old state's school that you are in-state applicant, because - from what you've described - you're not. It's entirely possible that your old state's school doesn't have the wherewithal to realize that. However, if you were to apply, be accepted, and attend school in your old state, then you are taking a risk (perhaps a small one) that they will (eventually) deem you an out-of-state applicant and force you to pay out-of-state tuition. They could even seek reimbursement for the difference between in- and out-of-state tution paid in years prior to the discovery of your domicile at the time of acceptance.
 
Generally speaking state of residence is determined by your intent to stay in a state indefinitely. This is generally evidenced by address, the filing of tax returns, car registration, drivers license etc.

If you look at tables 20 and 21 on the AAMC website you will conclude that the residents of some states such as South Dakota and West Virginia have a much easier path into medical school than residents of states like Iowa, New Hampshire and Rhode Island.

As a new resident of a state the admissions offices at its three med schools may see you as a carpet bagger who moved there just to get into medical school and deny you admission on those grounds. The University of New Mexico did that and the applicant sued on the grounds that several of her constitutional rights had been violated. Although the US Court of Appeals said her arguments had merit, she lost. See Buchwald v. New Mexico.

It sounds to me that the one med school in your old state of residence is jerking you around. If the three state med schools in your new state of residence have classes that are 20-25% non resident and your stats are competitive at one or more of those schools (See the MSAR) I would embrace your new state of residence. Good luck.
 
Thank you for your input. Sounds like the new state is what I will put down as my residence.

Thanks, I think I will embrace the new state. The admissions at each school did not seem to think that I was moving to their state just for medical school, in fact they were awfully positive about my situation. I'll take that as a good sign.

You'll want to be very sure about this. As in, it may be a good sign that the admissions office considers you as a resident, but that doesn't really mean much. Your new state likely has specific rules about getting in-state consideration/tuition for its schools. You'll want to make sure you fulfill those requirements.

As Obnoxious Dad said, establishing domicile is about demonstrating intent, which is a difficult thing to do legally. For the average person, just moving to a new state and working full-time is sufficient to demonstrate said intent, but the standards for receiving in-state tuition, etc., are often higher. You're already paying state taxes, if applicable, in your new state, which will help. But if you haven't already, then you need to register to vote, register your vehicle, and get a new driver's license in your new state. If you're so inclined, you can also draft a will to be executed in your new state. Truthfully, if you've been in your new state for any length of time, it's likely that you are already required to register your vehicle and get a new driver's license. But for our purposes, these are ways to demonstrate your intent to remain in that state.
 
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