Institutions of higher education that charge designated tuition are required to set aside funds for financial assistance under Texas Education Code (TEC), Sections 56.011 and 56.012. The governing board of each institution must set aside not less than 15% of any amount of designated tuition charged to a resident undergraduate or graduate student in excess of $46 per semester credit hour.
Each student who pays designated tuition must be provided a notice regarding the amount of tuition set aside for financial assistance. The Texas Higher Education Coordinating Board is required under TEC, Section 56.014(d), to prescribe minimum standards on the form and content of the notice to students who pay designated tuition, which are provided below along with some frequently asked questions.
Amount: The amount of designated tuition that is set aside for financial aid programs is based on the number of hours in which a student originally enrolls and must be reported to the student. If a student adds or drops courses and tuition charges change, updated notices are not required.
Notice: Institutions must notify students who are paying designated tuition of the amount set aside in one of the following ways:
- In a printed statement that appears on or is included with the student’s tuition bill or billing statement;
- Included with the student’s tuition receipt; or
- If the institution does not generate a billing statement or tuition receipt for any semester or other academic term, a notice must be generated and sent to the student via email regarding designated tuition set-asides.
The formula for calculating the tuition set-aside amount is equal to:
The number of hours in which the student enrolls, multiplied by the designated tuition rate minus 46, multiplied by the percentage the institution sets aside for financial aid purposes.
- Institution A charges $54/hour for designated tuition and sets aside 15% of the funds for financial aid.
- Student A enrolls for 12 hours.
- Designated tuition set-aside for financial aid = 12 x (54-46) x 15% = $14.40