Yes, qualifying as "in-state" takes a full year, and you do have to switch driver's license,voter ID, pay state taxes, etc. Most schools have an office devoted to helping you do that. In addition, as a student you usually have to be able to show proof that you stayed in the state during breaks. I think you are allowed to have 2-3 weeks outside the state for the year and that's it. I know California is especially strict about this, not sure about other "less desirable" (for tuition purposes) states.