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Here also, state school=public school. They receive state funding (and therefore have different resident vs non-resident tuition rates and their board of directors are elected.
We definitely have "tiers" within our state schools. The University of Michigan is clearly one of the best, if not the best, school in the state. Some private schools would compete, but are not as well known. Michigan State wants to be on that level but doesn't quite make it. Then we have the rest.. Wayne State, Michigan Tech, Northern Michigan, Central Michigan, Eastern Michigan, Western Michigan, etc. It really has more to do with selectivity of admission than anything else. It is hardest to get into Michigan, it is pretty easy to get into EMU.
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