The taxpayers are paying for foreign students (foreign or out of state) to go to schools like U of M, Michigan State, and other state chartered public schools - so if we are paying for them to attend, the charter is clear, they are there to benefit the population of the state, not a foreign student. Having a high tutition is one violation of their charter, a point system to qualify is another.
The way they are paying for the foreign student is through state grants, state funding and tuition hikes. They justify their multi-billion dollar budget by pointing out the good that they do while ignoring their main obligation that is clearly in their charter - to educate people from the state first with affordable education.
It has nothing to do with what school the kid picks or how we, MICHIGAN taxpayers pay for their food, it has to do with the principle that the school does not need state funding if they are going to focus on money/profit and not their obligations.