Tuition Equalization Grant (TEG) Program

ICUT's chief legislative priority, the Tuition Equalization Grant (TEG) Program provides essential funding to Texas students that choose to attend private, nonprofit colleges and universities in the state. The TEG Program:

  • Reduces taxpayer costs for higher education by providing limited financial assistance to low and middle-income Texas students that demonstrate financial need while attending Texas independent institutions of higher education;
  • Helps bridge the tuition gap between public and private universities in Texas;
  • Assists students whose financial circumstances limit their college opportunities;
  • Encourages independent institutions of higher education to expand and continue sharing the task of educating a rapidly-growing Texas student population; and
  • Strengthens independent institutions of higher education in Texas by helping them maintain ethnically, economically and geographically-diverse student bodies.

Who is Eligible for TEG?

To qualify for TEG funding, a student must:

  • Be a qualified Texas resident meeting the conditions for paying public Texas resident tuition;
  • Establish financial need as required by the Texas Higher Education Coordinating Board;
  • Be enrolled at least three-quarter time at an approved Texas independent institution of higher education;
  • Earn 24 semester credit-hours per year while maintaining a minimum 2.5 GPA; and
  • Not receive any form of athletic scholarship while receiving TEG.

What Types of Students Receive TEG Funding?

  • In FY 2015, $96.2 million in TEG funding aided 27,314 Texas students.
  • The overall average family income of TEG recipients is about $43,503.
  • In FY 2015, 59 percent of TEG recipients also received Federal Pell Grants. Pell Grant recipients demonstrate the most financial need in higher education.
  • TEG recipients broadly represent the racial, ethnic, socioeconomic and geographic diversity of Texas.

What is the Return on State Investment in TEG?

  • Degrees produced by independent, nonprofit ICUT member schools cost taxpayers about 8 percent of the cost of degrees produced by Texas public institutions.
  • In FY 2015, the average TEG grant of $3,314 saved the state about 51 percent of the estimated taxpayer appropriation of $6,500 for each full-time Texas public university student.
  • If TEG recipients had enrolled at Texas public institutions in FY 2015, taxpayers would have paid more than $177.5 million - nearly twice the appropriation for TEG that year.  

For more about TEG and independent higher ed, see: