Rising home prices and mortgage rates put many families under tremendous financial pressure, but choosing an exceptional place to live could save you tens of thousands of dollars in education costs. Some U.S. cities offer unique free college tuition policies that provide an additional financial advantage for families, especially those with children in school.

According to Education Data, the average cost of a college student in the U.S. is approximately $38,270 per year, totaling nearly $153,080 over four years. At the same time, the average home price in the U.S. is $424,950, with mortgage rates as high as 7 percent. For families with multiple children, choosing these specific cities may be a great way to ease the financial strain.

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The Birthplace of Tuition-Free Programs

Wheelock, Vermont was the first district in the nation to offer free tuition. As early as 1830, Dartmouth College President Nathan Lord offered full tuition assistance to qualified applicants who were Wheelock residents. This policy continues to this day and has been a key reason why many families have relocated here.

Tuition at Dartmouth College is a whopping $66,123 for the 2024-25 academic year, totaling $264,492 over four years. If you live in Wheelock and your child is successfully admitted to Dartmouth, this fee is completely waived. However, it should be noted that the acceptance rate to this prestigious school is only 5.4%, making it extremely competitive.

Currently, 32 states in the U.S. offer free college tuition, and six cities offer location-based tuition assistance programs. (Getty Images)

A look at the top six free tuition cities

In addition to Wheelock, six other cities in the U.S. offer free tuition programs based on place of residence, attracting many families to settle there. Below are highlights of these cities:

1. Chicago, Illinois

Average home price: $372,000

Minimum income for comfortable living: $82,287

Policy Advantage: The Chicago Star Scholarship allows graduates of city high schools (GPA ≥ 3.0) to attend the City Colleges of Chicago for free. Students have three years to utilize this scholarship.

2. Detroit, Michigan

Average home price: $96,850

Minimum income for comfortable living: $21,423

Policy Advantage: The Detroit Promise program offers free tuition to local high school graduates for industry-certified programs, two-year and four-year degree programs at 26 Michigan colleges and universities.

3. Kalamazoo, Michigan

Average home price: $281,825

Minimum income for comfortable living: $62,340

Policy Advantage: Eligible graduates of Kalamazoo Public Schools may attend any public university in the state for up to four years at no cost, provided they maintain a GPA ≥ 2.0 and take at least 12 credits per semester.

This four-bedroom, 1.5-bathroom home in Kalamazoo, Michigan is priced at $275,000. (Realtor.com)

4. Rockford, Illinois

Average home price: $168,675

Minimum income for comfortable living: $37,311

Policy Advantage: Through the Rockford Promise Scholarship Program, local public school graduates (GPA ≥ 3.0) can attend Northern Illinois University for four years for free.

5. San Francisco

Average home price: $1,195,000

Minimum income for comfortable living: $264,336

Policy Advantage: The San Francisco Promise program provides financial aid to students at San Francisco State University, and scholarships are renewable for four years, provided the student has a GPA ≥ 2.5.

6. Wheelock, Vermont

Average home price: $150,000

Minimum income for comfortable living: $33,180

Policy Advantage: Dartmouth College offers full tuition assistance to admitted Wheelock residents, but competition is fierce and high admissions standards need to be met.

This off-the-grid two-bedroom home on 11 acres in Wheelock, Vermont, is priced at $192,000. (Realtor.com)

Not only are these cities competitive in terms of home prices, but they also provide additional financial benefits to their residents through education policies. Whether you're a family about to plan a college education for your children or someone looking to find a cost-effective lifestyle, these locations are worth looking at. Educational benefits may become one of the deciding factors when choosing where to live, creating more possibilities for future financial plans.