OVERVIEW: TUITION DEREGULATION
AND TUITION SET ASIDES
DECEMBER 2016
BACKGROUND
Prior to 2003, the Texas Legislature had the regulatory authority to set tuition rates, generally mandating
that the same statutory and designated tuition rate be charged across the state. In 2003, the 78th
Legislature passed House Bill (HB) 3015, amending Texas Education Code §54.0513 to allow governing
boards of public universities to set different designated tuition rates. Tuition deregulation became
effective September 1, 2003, and universities began increasing designated tuition in spring 2004.
FREQUENTLY ASKED QUESTIONS
What are the different types of tuition charged to students enrolled at a public university?
There are three types of tuition:
Statutory Tuition: An amount of tuition set in statute (Texas Education Code §54.051) that institutions
must charge resident or nonresident undergraduate students. Currently, the university rate is set at $50
per semester credit hour (SCH) for resident students, with higher rates for nonresident students.
Effectively, statutory tuition mandates a minimum amount of tuition to be charged per SCH, although
students qualifying for certain statutorily defined tuition exemptions may be charged less or nothing at
all.
Designated Tuition: Texas Education Code
§54.0513 authorizes institutions of higher
education other than public community colleges
to impose on any undergraduate or graduate,
resident or nonresident student, an additional
tuition charge (i.e. in addition to statutory
tuition) that the governing board of the
institution considers necessary for the effective
operation of the institution. This rate varies by
institution.
In 2003 the 78th Texas Legislature passed House Bill (HB)
3015, allowing governing boards of public universities to set
different designated tuition rates. There is no upper limit on
the amount of designated tuition that a university may
charge and the amounts may vary by program, course level,
and academic period.
Board Authorized Tuition: A tuition charge authorized under Texas Education Code §54.008 for
graduate programs. Institutions can set tuition at rates at least twice that of undergraduate tuition,
and can set different rates among programs.
What other academic charges are paid by students?
In addition to statutory and designated tuition charges, all students are assessed certain fees:
Mandatory Fees are authorized by statute or by the governing board of an institution, and are charged
to a student upon enrollment to provide services available to every student. Examples of such fees are
library and laboratory fees, course and incidental fees collected under Texas Education Code §55.16(c),
and other mandatory fees as authorized by the governing board of the institution.
Course Fees are mandatory fees required of all students enrolled in a particular course, such as materials
for a chemistry lab, or a discretionary fee required of students in a given course, or for students
participating in a special activity, such as a parking fee. This includes fees for state funded continuing
education courses.
Total Academic Charges are the total of all tuition, mandatory, and course fee charges for a student
taking a given number of SCHs. It does not include textbook or other education related costs not directly
tied to institutional charges.
How much have tuition and fees increased since tuition deregulation?
From fall 2003 through fall 2015, the statewide average total academic charges for a student taking 15
SCHs at a public university has increased 119 percent (70 percent when adjusted for inflation).
How are universities held accountable for deregulated tuition?
The Legislature provided that, as a condition of tuition deregulation, each university shall make
satisfactory progress towards the goals provided in its master plan for higher education as well as the
state’s plan for higher education. HB 3015 and section 54.0515 require each university to meet
acceptable performance criteria, including measures such as graduation rates, retention rates,
enrollment growth, educational quality, efforts to increase diversity, opportunities for financial aid, and
affordability.
What are tuition set-asides?
In 1975, the Texas Legislature created the Texas Public Educational Grant (TPEG) program to provide
grant assistance to students with financial need. To fund this program, public institutions of higher
education are required to “set-aside” a portion of the statutory tuition they collect from students in
order to make TPEG awards. The set aside amount is 15 percent of resident statutory tuition at
universities, state and technical colleges, and 6 percent of resident statutory tuition at community
colleges. In FY15, approximately $146 million in financial aid was awarded through TPEG.
In deregulating tuition and allowing universities to set their own designated tuition rates, the Legislature
also required universities to set-aside a portion of their designated tuition revenues for financial aid
targeted to financially needy students.
Specifically, HB 3015 amended the Education Code by adding §§56.011 and 56.012, which require
universities to set aside at least 15 percent of the amount of undergraduate and graduate designated
tuition charged in excess of $46 per semester credit hour. This set aside is to be used to provide financial
2
assistance for financially needy undergraduate or graduate students at the institution. In FY15, grant
and scholarship aid awarded through HB 3015 set-asides totaled $219 million.
Previously, institutions were also required to set aside an additional five percent of the
undergraduate amount of designated tuition charged in excess of $46 per semester credit hour to
fund the B-On-Time (BOT) Loan Program. These funds were used to make zero-interest loans to
qualifying students, with the provision that the loan was forgiven if the student graduated on-time
and with a ‘B’ average. HB 700, 84th Texas Legislature, limited future BOT awards to students who
had received a loan prior to the 2015-16 academic year and abolishes the program entirely in 2020.
The five percent tuition set-aside was eliminated effective in fall 2015.
For more information:
Office of External Relations
512-427-6111
[email protected]
3
TEXAS HIGHER EDUCATION
COORDINATING BOARD
TUITION AND FEES DATA
The tuition and fee data reported on the following pages reflects the average amounts charged to resident undergraduate students enrolled in 15 semester
credit hours (SCH) per semester at Texas public universities. Amounts reported include statutory tuition, designated tuition, average mandatory fees and
average college course fees.
A student's actual charges may vary based on the student's classification and level of enrollment, the college the student attends within the university, the
student's specific personal circumstances, or for other reasons deemed appropriate by the institution.
FOOTNOTES:
* All data was reported under definitions for tuition and fees adopted January 2006 by the Coordinating Board.
(1) Texas A&M University implemented flat-rate tuition plans in Fall 2005.
(2) The University of Texas at Arlington implemented flat-rate tuition plans in Fall 2006.
(3) The Univerity of Texas at Austin implemented flat-rate tuition plans in Fall 2005.
(4) University of North Texas implemented flat-rate tuition plans in Fall 2007.
(5) University of North Texas - Dallas began reporting IFRS data Fall 2010.
(6) The University of Texas-Rio Grande Valley began reporting IFRS data Fall 2015. Data are no longer collected under the institution names of The University
of Texas-Pan American or The University of Texas at Brownsville.
DATA AMENDMENT:
NOTE: For the purposes of calculating the change in tuition and fees between Fall 2003 and Fall
2015, the statewide averages exclude those universities that did not exist in Fall 2003 (Texas A&M
University-Central Texas, Texas A&M University-San Antonio, and the University of North TexasDallas).
Note:
The Total Academic Charges column is the sum of Statutory Tuition + Designated Tuition + Mandatory Fees + Avg Coll and Course Fees for each school.
The bottom of the column is the average (excluding zeroes, if any) of the Total Academic Charges of each school.
The Fall 2014 + Spring 2015 column is the sum of the Total Academic Charges of each semester.
The bottom of that column is the average (excluding zeroes, if any) of the total of Fall 2014 and Spring 2015.
Thus, adding the Fall 2014 to the Spring 2015 averages will not equal to the average of the sums of the Fall 2014 + Spring 2015 totals.
Univ Tuition and Fees (IFRS Fall 03 thru Fall 15) 03.22.2016.xlsx
Tuition and Fees Footnotes
4/11/2016
ACADEMIC CHARGES
(TUITION, MANDATORY FEES, AND AVERAGE COLLEGE AND COURSE FEES)
FALL 2003-FALL 2015
Resident Undergraduates
at Texas Public
Universities (15 SCH)
Statutory Tuition
Institution
Fall 2003 Fall 2015
Change
Designated Tuition
Percent
Fall 2003 Fall 2015
Change
Change
Angelo State University
Lamar University
Midwestern State University
Prairie View A&M University
Sam Houston State University
Stephen F. Austin State University
Sul Ross State University
Tarleton State University
Texas A&M International University
Texas A&M University (1)
Texas A&M University at Galveston
Texas A&M University - Central Texas
Texas A&M University-Commerce
Texas A&M University-Corpus Christi
Texas A&M University-Kingsville
Texas A&M University-San Antonio
Texas A&M University-Texarkana
Texas Southern University
Texas State University
Texas Tech University
Texas Woman's University
The University of Texas at Arlington (2)
The University of Texas at Austin (3)
The University of Texas at Brownsville
The University of Texas at Dallas
The University of Texas at El Paso
The University of Texas at San Antonio
The University of Texas at Tyler
The University of Texas of the Permian Basin
The University of Texas-Pan American
The University of Texas-Rio Grande Valley (6)
University of Houston
University of Houston-Clear Lake
University of Houston-Downtown
University of Houston-Victoria
University of North Texas (4)
University of North Texas - Dallas (5)
West Texas A&M University
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
n/a
$690
$690
$690
n/a
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
$690
n/a
$690
$690
$690
$690
$690
n/a
$690
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
n/a
$750
$750
$750
$750
$750
n/a
n/a
$750
$750
$750
$750
$750
$750
$750
$60
$60
$60
$60
$60
$60
$60
$60
$60
$60
$60
$0
$60
$60
$60
$0
$60
$60
$60
$60
$60
$60
$60
$0
$60
$60
$60
$60
$60
n/a
n/a
$60
$60
$60
$60
$60
$0
$60
9%
9%
9%
9%
9%
9%
9%
9%
9%
9%
9%
0%
9%
9%
9%
0%
9%
9%
9%
9%
9%
9%
9%
0%
9%
9%
9%
9%
9%
n/a
n/a
9%
9%
9%
9%
9%
0%
9%
$600
$600
$585
$540
$585
$615
$450
$645
$525
$690
$690
n/a
$645
$690
$600
n/a
$510
$690
$690
$690
$690
$690
$690
$480
$690
$690
$690
$690
$600
$480
n/a
$690
$690
$615
$690
$690
n/a
$458
$1,680
$2,700
$1,821
$2,276
$2,482
$2,783
$1,875
$1,819
$1,606
$2,556
$2,895
$1,327
$1,645
$1,755
$1,433
$1,303
$1,767
$2,745
$3,018
$2,548
$2,225
$2,629
$2,641
n/a
$3,191
$2,053
$2,241
$1,935
$1,768
n/a
n/a
$3,091
$2,205
$2,176
$1,992
$3,044
$3,024
$1,761
$1,080
$2,100
$1,236
$1,736
$1,897
$2,168
$1,425
$1,174
$1,081
$1,866
$2,205
n/a
$1,000
$1,065
$833
n/a
$1,257
$2,055
$2,328
$1,858
$1,535
$1,939
$1,951
n/a
$2,501
$1,363
$1,551
$1,245
$1,168
n/a
n/a
$2,401
$1,515
$1,561
$1,302
$2,354
n/a
$1,303
180%
350%
211%
321%
324%
353%
317%
182%
206%
270%
320%
n/a
155%
154%
139%
n/a
246%
298%
337%
269%
222%
281%
283%
n/a
362%
198%
225%
180%
195%
n/a
n/a
348%
220%
254%
189%
341%
n/a
284%
STATEWIDE AVERAGE
$690
$750
$60
9%
$625
$2,229
$1,627
256%
Univ Tuition and Fees (IFRS Fall 03 thru Fall 15) 03.22.2016.xlsx
63
Total Tuition
Percent of
Undergraduate
Percent
Students
Change
Enrolled at 15
SCH
19.83%
88.25%
12.13%
32.93%
18.01%
18.31%
n/a
17.80%
n/a
14.37%
18.30%
n/a
96.86%
15.14%
20.23%
n/a
0.73%
82.07%
16.19%
18.18%
n/a
10.51%
20.24%
4.98%
n/a
7.35%
16.91%
14.48%
11.76%
n/a
n/a
9.70%
12.63%
8.07%
5.94%
18.55%
n/a
n/a
Fall 2003 Fall 2015
Change
Percent
Change
$1,290
$1,290
$1,275
$1,230
$1,275
$1,305
$1,140
$1,335
$1,215
$1,380
$1,380
n/a
$1,335
$1,380
$1,290
n/a
$1,200
$1,380
$1,380
$1,380
$1,380
$1,380
$1,380
$1,170
$1,380
$1,380
$1,380
$1,380
$1,290
$1,170
n/a
$1,380
$1,380
$1,305
$1,380
$1,380
n/a
$1,148
$2,430
$3,450
$2,571
$3,026
$3,232
$3,533
$2,625
$2,569
$2,356
$3,306
$3,645
$2,077
$2,395
$2,505
$2,183
$2,053
$2,517
$3,495
$3,768
$3,298
$2,975
$3,379
$3,391
n/a
$3,941
$2,803
$2,991
$2,685
$2,518
n/a
n/a
$3,841
$2,955
$2,926
$2,742
$3,794
$3,774
$2,511
$1,140
$2,160
$1,296
$1,796
$1,957
$2,228
$1,485
$1,234
$1,141
$1,926
$2,265
$0
$1,060
$1,125
$893
$0
$1,317
$2,115
$2,388
$1,918
$1,595
$1,999
$2,011
$0
$2,561
$1,423
$1,611
$1,305
$1,228
n/a
n/a
$2,461
$1,575
$1,621
$1,362
$2,414
$0
$1,363
88%
167%
102%
146%
153%
171%
130%
92%
94%
140%
164%
0%
79%
82%
69%
0%
110%
153%
173%
139%
116%
145%
146%
0%
186%
103%
117%
95%
95%
n/a
n/a
178%
114%
124%
99%
175%
0%
119%
$1,315
$2,979
$1,687
126%
2003-2015 Change
4/11/2016
ACADEMIC CHARGES
(TUITION, MANDATORY FEES, AND AVERAGE COLLEGE AND COURSE FEES)
FALL 2003-FALL 2015
Resident Undergraduates
at Texas Public
Universities (15 SCH)
Mandatory Fees
Institution
Angelo State University
Lamar University
Midwestern State University
Prairie View A&M University
Sam Houston State University
Stephen F. Austin State University
Sul Ross State University
Tarleton State University
Texas A&M International University
Texas A&M University (1)
Texas A&M University at Galveston
Texas A&M University - Central Texas
Texas A&M University-Commerce
Texas A&M University-Corpus Christi
Texas A&M University-Kingsville
Texas A&M University-San Antonio
Texas A&M University-Texarkana
Texas Southern University
Texas State University
Texas Tech University
Texas Woman's University
The University of Texas at Arlington (2)
The University of Texas at Austin (3)
The University of Texas at Brownsville
The University of Texas at Dallas
The University of Texas at El Paso
The University of Texas at San Antonio
The University of Texas at Tyler
The University of Texas of the Permian Basin
The University of Texas-Pan American
The University of Texas-Rio Grande Valley (6)
University of Houston
University of Houston-Clear Lake
University of Houston-Downtown
University of Houston-Victoria
University of North Texas (4)
University of North Texas - Dallas (5)
West Texas A&M University
STATEWIDE AVERAGE
Fall 2003 Fall 2015
Change
Average College Course Fees
Percent
Fall 2003 Fall 2015
Change
Total Tuition and Fees
Change
Percent
Change
Fall 2003 Fall 2015
Change
Percent
Change
$478
$427
$432
$566
$619
$382
$561
$417
$446
$810
$468
n/a
$477
$537
$633
n/a
$231
$486
$628
$1,145
$438
$831
$714
$302
$1,242
$417
$842
$415
$438
$322
n/a
$588
$370
$279
$460
$827
n/a
$373
$1,502
$1,409
$1,341
$1,797
$1,436
$1,139
$980
$1,067
$1,526
$1,605
$1,126
$861
$1,321
$1,678
$1,561
$1,620
$1,001
$868
$1,204
$1,958
$1,339
$1,060
$1,512
n/a
$1,962
$726
$1,373
$971
$711
n/a
n/a
$1,092
$639
$574
$801
$1,251
$150
$1,184
$1,024
$982
$909
$1,231
$817
$757
$419
$650
$1,080
$795
$658
$0
$844
$1,141
$928
$0
$770
$382
$576
$813
$901
$229
$798
$0
$720
$309
$531
$556
$273
n/a
n/a
$504
$269
$295
$341
$424
$0
$811
214%
230%
210%
217%
132%
198%
75%
156%
242%
98%
141%
0%
177%
212%
147%
0%
333%
79%
92%
71%
206%
28%
112%
0%
58%
74%
63%
134%
62%
n/a
n/a
86%
73%
106%
74%
51%
0%
217%
$25
$30
$85
$58
$76
$48
$16
$35
$0
$167
$20
n/a
$9
$35
$5
n/a
$4
$0
$64
$0
$77
$155
$627
$18
$0
$40
$0
$0
$21
$67
n/a
$298
$108
$31
$45
$159
n/a
$100
$0
$0
$210
$0
$384
$46
$16
$13
$0
$0
$0
$0
$0
$80
$0
$217
$55
$0
$0
$0
$0
$0
$0
n/a
$0
$102
$193
$0
$89
n/a
n/a
$470
$77
$14
$0
$223
$0
$9
-$25
-$30
$125
-$58
$308
-$2
$0
-$22
$0
-$167
-$20
$0
-$9
$45
-$5
$0
$51
$0
-$64
$0
-$77
-$155
-$627
$0
$0
$62
$193
$0
$68
n/a
n/a
$172
-$31
-$17
-$45
$64
$0
-$91
-100%
-100%
147%
-100%
405%
-4%
0%
-63%
0%
-100%
-100%
0%
-100%
129%
-100%
0%
1,296%
0%
-100%
0%
-100%
-100%
-100%
0%
0%
155%
0%
0%
324%
n/a
n/a
58%
-29%
-55%
-100%
40%
0%
-91%
$1,793
$1,747
$1,792
$1,854
$1,970
$1,735
$1,717
$1,787
$1,661
$2,357
$1,868
n/a
$1,821
$1,952
$1,928
n/a
$1,435
$1,866
$2,072
$2,525
$1,895
$2,366
$2,721
$1,490
$2,622
$1,837
$2,222
$1,795
$1,749
$1,559
n/a
$2,266
$1,858
$1,615
$1,885
$2,366
n/a
$1,621
$3,932
$4,859
$4,122
$4,823
$5,052
$4,718
$3,621
$3,649
$3,882
$4,911
$4,771
$2,938
$3,716
$4,263
$3,744
$3,890
$3,573
$4,363
$4,972
$5,256
$4,314
$4,439
$4,903
$0
$5,903
$3,631
$4,557
$3,656
$3,318
n/a
$3,438
$5,403
$3,671
$3,514
$3,543
$5,268
$3,924
$3,704
$2,139
$3,112
$2,330
$2,969
$3,082
$2,983
$1,904
$1,862
$2,221
$2,554
$2,903
$0
$1,895
$2,311
$1,816
$0
$2,138
$2,497
$2,900
$2,731
$2,419
$2,073
$2,182
-$1,490
$3,281
$1,794
$2,335
$1,861
$1,569
n/a
n/a
$3,137
$1,813
$1,899
$1,658
$2,902
$0
$2,083
119%
178%
130%
160%
156%
172%
111%
104%
134%
108%
155%
0%
104%
118%
94%
0%
149%
134%
140%
108%
128%
88%
80%
-100%
125%
98%
105%
104%
90%
n/a
n/a
138%
98%
118%
88%
123%
0%
129%
$547
$1,210
$679
121%
$87
$137
$121
59%
$1,934
$4,229
$2,355
119%
Univ Tuition and Fees (IFRS Fall 03 thru Fall 15) 03.22.2016.xlsx
64
2003-2015 Change
4/11/2016