out of state college for graduate school - change driver's license?

[Anonymous]

Our 24-year-old will be heading to graduate school out-of-state (in NJ) for at least 5 years.

She's going to live in graduate student housing there for at least one year but then will likely have an apartment where she will be living permanently. She'll visit us, but that's going to be where she lives. She has her own car and will be living on a graduate student stipend which won't let her live in luxury, but will allow her to pay rent and other bills, and buy groceries. She'll have her own health insurance through the school.

I think it makes sense for her to transfer her driver's license to NJ and register the car there, and have her new home be her permanent address. But many of my friends, and my daughter herself, seem to think that she should keep our home address as her permanent address and keep her ID here, since she is still a student. Also she may be moving apartments every year or so.

Which makes more sense? I checked the New Jersey DMV site to see what the rules for students were. I understand that for undergrads, their home address stays their permanent address until they graduate, which makes complete sense to me as we are still very much supporting them, they come home over the summers, etc. But it seems a little silly to me for an almost 25-year-old to still be using her parents' address as her permanent address.

[Anonymous]

If she’s going to be in NJ for at least 5 years, she should update her license and register the car in NJ.

Let her get certain mail sent to your home if she’s worried it’ll get lost when she’s moving.

[Anonymous]

If there is a chance she moves abroad after, and you all live in VA. I’d recommend her moving her stuff (or at least researching) to NJ. Family left VA 10 yrs ago and said VA is one of the hardest states to have as your last US residence based on taxes while abroad. Other states are much more reasonable and easier to work with.

[Anonymous]

Does she get health insurance through school? She can’t stay on your plan past 25 and if she needs it through the NJ exchange then she needs to change residency.

I guess the other consideration is taxes…she probably doesn’t earn enough in grad school for it to matter (and likely will get it all refunded regardless of which state she is a resident).

[Anonymous]

I think it has to match her insurance. (Or perhaps that is car registration ). Our company knew the situation (she would be in the other state for years, as a full time grad student). They gave us the option of which state to insure in. The home one was cheaper.

Where you could run into problems is whether the kid’s offer of funding is based upon state residency.

[Anonymous]

DD is starting grad school in PA in the fall for 3 or 4 years and will keep our home address as permanent address. Seems silly to change it when she might be moving yearly and has no car. And she is still on our health insurance too.

[Anonymous]

Check the parking situation also. If it is street parking, she may have no choice but to register the car in NJ in order to get a parking permit.

[Anonymous]

I would wait to see where she settles. If she is going to move every year, just keep her current residence. If she is going to stay next year on, consider changing her address. I would look into what you need to do to title a car in NJ. going through inspections can be a real headache.

[Anonymous]

If she is going to move after one year in dorm, not much point in changing it now.

[Anonymous]

Anonymous wrote:If there is a chance she moves abroad after, and you all live in VA. I’d recommend her moving her stuff (or at least researching) to NJ. Family left VA 10 yrs ago and said VA is one of the hardest states to have as your last US residence based on taxes while abroad. Other states are much more reasonable and easier to work with.

This is bad advice. No matter what state you reside in before you live abroad, you will be a resident and have to pay its taxes. Jersey has much higher taxes than VA.

[Anonymous]

Anonymous wrote:Family left VA 10 yrs ago and said VA is one of the hardest states to have as your last US residence based on taxes while abroad. Other states are much more reasonable and easier to work with.

The quotes bit is SO untrue. I consulted an actual Tax Attorney on this question. A bunch states are much more difficult than VA - California considers people California residents who owe state income tax -- even after they move half way around the world. Virginia does NOT do any of that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If there is a chance she moves abroad after, and you all live in VA. I’d recommend her moving her stuff (or at least researching) to NJ. Family left VA 10 yrs ago and said VA is one of the hardest states to have as your last US residence based on taxes while abroad. Other states are much more reasonable and easier to work with.

This is bad advice. No matter what state you reside in before you live abroad, you will be a resident and have to pay its taxes. Jersey has much higher taxes than VA.

Why not move to a state with no state income tax?

[Anonymous]

When I went to law school I changed my license and car registration to that state. Never would have occurred to me not to.

Check the local laws where she is moving. She may have to at least register the car for personal property tax or access-to-street-parking reasons.

[Anonymous]

My daughter went to college in Jersey and when she took our car there sophomore year we needed a separate policy for it and Geico wanted us to register it there instead of at her permanent residence in Maryland.

[Anonymous]

when my son moved to CA for his phd program, he had to change to CA resident after the first year. it had something to do with instate tuition vs out of state tuition. even though it was a fully funded phd program, from school's perspective, it mattered.