Tuition Set-Aside Information

Senate Bill 1304, passed by the 81st Texas Legislature, directs institutions of higher education to provide notices to students (Texas Education Code, Section 56.014) who pay designated tuition of the amount of the tuition that is set aside for financial assistance. Therefore, the University of Texas at Austin is required by law (Texas Education Code, Sections 56.011, and 56.012) to set aside a percentage of designated tuition for financial assistance programs.

  • Notifications are sent to students each semester they are enrolled via e-mail after the 20th class day for Fall and Spring terms and after the 15th class day of the final summer term.
  • The set aside does not affect financial aid awards nor does it guarantee that you will personally receive financial assistance. Financial assistance eligibility is determined by the information provided on the Free Application for Federal Student Aid (FAFSA) form.

Examples of the Financial Assistance Programs funded from tuition set asides are: 
1. Grants
2. Scholarships
3. Work-Study Programs

Frequently Asked Questions

What is tuition set-aside?

Tuition set aside is a portion of the designated tuition paid by resident students (those classified as citizens of the State of Texas), “set aside” and dedicated to provide need-based financial aid to students.

Why are these funds being set aside?

The university is required by law to set aside a portion of designated tuition charged to a resident student. See Texas Education Code Sections 56.011 and 56.012.

How much of my tuition is set aside?

Fifteen percent (15%) of resident designated tuition defined as tuition in excess of $46 per credit hour, statutory tuition, and fees. Due to this and the University’s flat rate tuition structure, a student’s designated tuition amount, to which the 15% applies, can vary by school and number of semester credit hours taken. See Texas Education Code Sections 54.0513.

Am I being charged extra?

No, by state law, the University is required to put a portion of the designated tuition that state residents pay into a fund to support financial aid to students. No additional amount is assessed to compensate for this set aside.

How is this money used? Will I benefit from it?

Financial assistance provided by funds set aside includes grants, scholarships, and work-study programs. To be eligible for assistance, a student must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board. In order to be considered for need based aid, the student must complete a Free Application for Federal Student Aid (FAFSA). See the steps on how to apply/receive Financial Aid.

Will this impact my financial aid?

No, tuition set aside does not affect your aid nor does it guarantee that you will receive financial aid. Aid will be determined on a case-by-case basis and is based on your FAFSA and aid eligibility as determined by the Financial Aid Office.

What if I don’t want my money to be used this way?

Unfortunately, The University of Texas at Austin does not have the ability to change the requirements of the state law. You may direct further questions and concerns to the Texas Legislature.

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