State of Student Aid in Texas – 2022

Section 4: Cost of Education and Sources of Aid in Texas

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Texas Public Four-Year University Cost of Attendance Nearly Level with National Average

The tuition and fees charged to students, along with living expenses, books and supplies, transportation, and other expenses, constitute a school’s cost of attendance. From 2020 to 2021, total costs increased by $1,220 in Texas and $547 nationally. Weighted for enrollment,* two semesters of full-time** undergraduate education at a Texas public four-year university averaged $26,415 in Award Year (AY) 2020–2021. This amount was just $257 less than the national average. The primary expenses facing students are not tuition and fees but food and housing, which make up almost 40 percent of the cost of attendance in Texas. These costs are not discretionary: students must eat, and unless they live with parents — and 82 percent of U.S. public university undergraduates do not — they must pay rent. Together, food, housing, and other expenses comprise about 56 percent of the student budget, while tuition and fees make up 40 percent.

Cost of attendance is the starting point for determining financial aid. From the cost of attendance, the student’s expected family contribution*** is subtracted to calculate the student’s financial need. Once financial need is determined, an aid package, consisting primarily of grants and loans, can be developed. What students actually pay for college depends on a number of factors, including the aid they receive and how frugally they live, as well as their enrollment patterns. To cut costs, many students enroll part time, work long hours, or both — but these strategies may increase their chance of dropping out of school without completing their program of study.

Weighted Average Public Four-year University Cost of Attendance for Two Semesters for Full-time Undergraduates Living Off Campus in Texas and the U.S. (AY 2019–2020 and AY 2020–2021)

Weighted Average Public Four-year University Cost of Attendance for Two Semesters for Full-time Undergraduates Living Off Campus in Texas and the U.S. (AY 2019–2020 and AY 2020–2021)

* An institution’s costs are multiplied by its enrollment. The sum of costs for all schools is then divided by full-time, undergraduate enrollment, such that schools with higher enrollments are given greater weight. See glossary for clarification.
** 12 semester hours or more.
*** Expected Family Contribution is now known as the Student Aid Index. It is an index number that colleges use to determine a family’s eligibility for financial aid. The number is determined through a federal formula that considers family income and size as well as the number of children in college, among other factors. The average amount that families actually contribute to educational expenses is unknown.
Sources: All Costs and Enrollments for 2020–2021: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2020 (http://nces.ed.gov/ipeds/); All Costs and Enrollments for 2019–2020: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2019 (http://nces.ed.gov/ipeds/); All other: U.S. Department of Education, National Postsecondary Student Aid Study – Administrative Collection (NPSAS-AC) 2018 (http://www.nces.ed.gov/das).

Texas Public Two-Year Colleges Cost Catching up to National Average

The cost for two full-time* semesters at Texas public two-year colleges, weighted for enrollment,** averaged $20,232 in AY 2020–2021. This is an increase of $738 over the Texas average in AY 2019–2020 and is just $505 less than the AY 2020–2021 national average. Costs in all categories have increased in Texas and nationally since AY 2019–2020, with the exception of the books and supplies category. The largest increases in Texas occurred in the food and housing category.

The total cost of attendance for a student includes tuition and fees, books and supplies, and living expenses. The student’s financial need is calculated by subtracting the expected family contribution*** from the cost of attendance, which is the basis for determining the financial aid package. This package consists primarily of grants and loans. The actual amount that students pay for college depends upon factors such as how much and what type of aid they receive, how frugally they live, and the number of credit hours they take. To save money, students may enroll in school part time, work long hours, or both — but these strategies may increase their chance of dropping out of school without completing their program of study.

Weighted Average Public Two-year College Cost of Attendance for Two Semesters for Full-time Undergraduates Living Off Campus in Texas and the U.S. (AY 2019–2020 and AY 2020–2021)

Weighted Average Public Two-year College Cost of Attendance for Two Semesters for Full-time Undergraduates Living Off Campus in Texas and the U.S. (AY 2019–2020 and AY 2020–2021)

without completing their program of study.
* 12 semester hours or more.
** An institution’s costs are multiplied by its enrollment. The sum of costs for all schools is then divided by full-time, undergraduate enrollment, such that schools with higher enrollments are given greater weight. See glossary for clarification.
*** Expected Family Contribution is now known as the Student Aid Index. It is an index number that colleges use to determine a family’s eligibility for financial aid. The number is determined through a federal formula that considers family income and size as well as the number of children in college, among other factors. The average amount that families actually contribute to educational expenses is unknown.
Sources: All Costs and Enrollments for 2020–2021: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2020 (http://nces.ed.gov/ipeds/); All Costs and Enrollments for 2019–2020: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2019 (http://nces.ed.gov/ipeds/); All other: U.S. Department of Education, National Postsecondary Student Aid Study – Administrative Collection (NPSAS-AC) 2018 (http://www.nces.ed.gov/das). 

Costs at Texas Private Four-Year Universities Now Higher Than National Average

The increase from Award Year (AY) 2019–2020 to AY 2020–2021 of the average cost of attendance at private four-year universities in Texas, at $2,487, was due mostly to an average $1,954 increase in tuition and fees. Weighted for enrollment,* the total cost of attendance for undergraduates at Texas private four-year universities for two full-time** semesters averaged $56,051 in AY 2020–2021. This is higher than the national cost of attendance for the same year, at $55,358, for the first time. The difference is mainly because tuition and fees costs in Texas are $1,269 higher than the national average.

As with public institutions, students who enroll in private four-year universities may receive an aid package, which primarily consists of grants and loans. A student’s need is calculated by subtracting the expected family contribution*** from the cost of attendance in order to determine what kind of financial aid package they should receive. The total cost of attendance includes tuition and fees, books and supplies, and living expenses. To save money, students may choose to enroll in school part time, work long hours, or both — but these strategies may increase their chance of dropping out of school without a degree.

Weighted Average Private Four-year University Cost of Attendance for Two Semesters for Full-time Undergraduates Living Off Campus in Texas and the U.S. (AY 2019–2020 and AY 2020–2021)

Weighted Average Private Four-year University Cost of Attendance for Two Semesters for Full-time Undergraduates Living Off Campus in Texas and the U.S. (AY 2019–2020 and AY 2020–2021)

* An institution’s costs are multiplied by its enrollment. The sum of costs for all schools is then divided by full-time, undergraduate enrollment, such that schools with higher enrollments are given greater weight. See glossary for clarification.
** 12 semester hours or more.
*** Expected Family Contribution is now known as the Student Aid Index. It is an index number that colleges use to determine a family’s eligibility for financial aid. The number is determined through a federal formula that considers family income and size as well as the number of children in college, among other factors. The average amount that families actually contribute to educational expenses is unknown.
Sources: All Costs and Enrollments for 2020–2021: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2020 (http://nces.ed.gov/ipeds/); All Costs and Enrollments for 2019–2020: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2019 (http://nces.ed.gov/ipeds/); All other: U.S. Department of Education, National Postsecondary Student Aid Study – Administrative Collection (NPSAS-AC) 2018 (http://www.nces.ed.gov/das).

The Cost of Going to College Continues to Rise Each Year

Weighted for enrollment,* the total cost of attendance in all sectors in Texas by four or five percent, and nationally between two and three percent, between Award Year (AY) 2019–2020 and AY 2020–2021. By percentage, Texas had larger increases in all sectors compared to the nation.

Research shows that rents increased by larger percentages in zip codes that have at least one four-year university compared to zip codes that do not have any four-year universities. Universities draw students and faculty, but also draw businesses. The demand for housing around universities drives up the prices beyond what is seen in areas without that demand.

The cost of attendance is the starting point for determining financial aid. What students actually pay for college depends on a number of factors, including the aid they receive and how frugally they live, as well as their enrollment and work patterns. To cut costs, many students enroll part time, work long hours, or both. In AY 2017–2018, 57 percent of all undergraduates nationwide attended less than full time/full year — that is, they either took fewer than 12 hours per semester or did not attend at least two semesters.

Change in Costs for Students Living Off Campus: Dollar and Percentage Change (AY 2019–2020 to AY 2020–2021, Costs Weighted for Enrollment*)

Texas Public Four-Year Public Two-Year Private Four-Year
$ % $ % $ %
Tuition and Fees (12 Hours / Semester) $565 6% $241 6% $1,954 5%
Books and Supplies -$4 0% -$155 -9% $0 0%
Food and Housing $571 6% $479 5% $419 4%
Other $88 2% $173 4% $114 3%
Total Change $1,220 5% $173 4% $114 3%

U.S. Public Four-Year Public Two-Year Private Four-Year
$ % $ % $ %
Tuition and Fees (12 Hours / Semester) $190 2% $133 3% $956 3%
Books and Supplies -$64 -5% -$95 -6% -$16 -1%
Food and Housing $243 2% $502 5% $355 3%
Other $178 4% $94 2% $47 1%
Total Change $547 2% $634 2% $1,342 2%

* An institution’s costs are multiplied by its enrollment. The sum of costs for all schools is then divided by full-time, undergraduate enrollment, such that schools with higher enrollments are given greater weight. See glossary for clarification.
Sources: All Costs and Enrollments for 2020–2021: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2020 (http://nces.ed.gov/ipeds/); All Costs and Enrollments for 2019–2020: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2019 (http://nces.ed.gov/ipeds/); Housing Demand: The Hechinger Report, “The Hidden Risk in Off-Campus Housing Costs,” August 23, 2019 (https://hechingerreport.org/the-hidden-risk-in-off-campus-housing-costs/); All other: U.S. Department of Education, National Postsecondary Student Aid Study – Administrative Collection (NPSAS-AC) 2018 (http://www.nces.ed.gov/das).

Living Situation Key to Staying Within Average Room and Board Budgets at Texas Public Universities

Food and housing make up almost 40 percent of the cost of attending a public university in Texas. These costs are variable, but they are not discretionary. Students have some control over their lifestyle choice, but they must eat and pay rent. As the food and housing cost estimate is the largest single component of the official cost of attendance at both community colleges and public universities, it has critical implications for the types and amounts of financial aid that students are offered and the amounts institutions expect that students/families can afford to pay.

Using their knowledge of housing located in areas popular with students, Texas universities attempt to estimate the cost of food and housing that is modest but adequate. The room and board estimate at Texas public universities for the 2020-2021 Award Year (AY) ranged from $7,265 to $13,938, with the average estimate at $9,787,* or $1,087 per month. The U.S. Department of Agriculture (USDA) estimates the minimum dietary needs of an adult can be met on $289 per month provided that all food is prepared at home, an unlikely scenario for young adults. Subtracting $289 from $1,087 leaves $798 for rent and utilities. The addition of one small pepperoni pizza per week, however, would increase the monthly food budget by $43,** leaving $755 for rent and utilities.

The U.S. Department of Housing and Urban Development (HUD) estimates the average nine-month cost of rent and utilities for a one-bedroom unit in the counties and Metropolitan Statistical Areas (MSAs)*** where Texas public universities are located to be $7,900, or $878 per month. Sharing housing lowers the cost: a shared one-bedroom costs $439 per person per month and a shared two-bedroom costs $536 per person per month.

These data suggest that a thrifty student who is a savvy grocery buyer, cooks nearly all his meals, and shares housing would stay within the institutional room and board estimate of $1,087 per month. However, a student who shares all these traits and lives alone will probably not be able to stay within the estimate at about half of Texas universities. At 97 percent of Texas universities, the room and board estimate is too low for a single parent with a dependent.

Average USDA/HUD Food and Housing Costs for Two Semesters (9 Months) for Counties and MSAs*** Where Texas Public Universities Are Located (AY 2020–2021)

Student sharing 1-bedroom unit Student sharing 2-bedroom unit Student living alone in 1-bedroom unit Single parent student with 1 child in 2-bedroom unit
Food $2,601 $2,601 $2,601 $3,914
Housing $3,950 $4,827 $7,900 $9,654
Total Food and Housing $6,551 $7,428 $10,501 $13,568
Average Room and Board Budget $9,787 $9,787 $9,787 $9,787

*$10,180 when weighted for enrollment; see glossary for clarification. ** Based on the cost at Domino’s Pizza near the University of Texas at Austin, April 2022. *** A Metropolitan Statistical Area is a geographic area of 50,000 or more inhabitants.
Sources: All Costs and Enrollments for 2020–2021: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) 2020 (http://nces.ed.gov/ipeds/); U.S. Department of Agriculture. “Official USDA Food Plans: Cost of Food at Home at Four Levels, U.S. Average, June 2021.” (https://www.fns.usda.gov/cnpp/usda-food-plans-cost-food-reports-monthly-report); U.S. Department of Housing and Urban Development (HUD). “Fair Market Rents 2021 for Existing Housing, October 2021,” (http://www.huduser.org/datasets/fmr.html)

Average Tuition at Texas Public Four-Year Institutions Has Increased by 26 Percent Since 2008, Lower Than for the U.S.

Overall, average tuition at public four-year institutions nationwide increased 35 percent between 2008 and 2019. Texas had one of the smaller increases in tuition over that time period among the largest six states with a 26 percent increase.

Percent Change in Average Tuition at Public Four-Year Colleges, Inflation Adjusted, 2008-2019

Percent Change in Average Tuition at Public Four-Year Colleges, Inflation Adjusted, 2008-2019

Average net price at Texas public four-year universities makes up about 20 percent of the median Texas household income, but this varies by race. Tuition and fees made up about 14 percent of the median income of Asian-American students and 16 percent of White students, but 25 percent and 26 percent of Hispanic students and African-American students, respectively.

Average Net Price at a Texas Public Four-Year University as a Percentage of Texas Median Household Income, by Race (2018)

Average Net Price at a Texas Public Four-Year University as a Percentage of Texas Median Household Income, by Race (2018)

Sources: Center on Budget and Policy Priorities, States Can Choose Better Path for Higher Education Funding in COVID-19 Recession, February 2021 (States Can Choose Better Path for Higher Education Funding in COVID-19 Recession | Center on Budget and Policy Priorities (cbpp.org)).

Nearly Two-Thirds of Student Aid Comes from the Federal Government

College students receive financial aid mainly from three sources: the federal government, the state government, and the colleges and universities they attend (“institutional” aid). Of these three, the federal government’s contribution is by far the largest for most students. Nationally and in Texas, the federal government provided more than 60 percent of the generally available direct financial aid* for undergraduate and graduate students in Award Year (AY) 2019–2020.

The state government and institutions in Texas and on average across the U.S. provided a similar percentage of the available aid to students in AY 2019–2020.**

Students may also receive tuition exemptions or waivers from their institutions. This type of aid is not included in the data in the chart due to data unavailability at the national level.

Direct Student Aid by Source (AY 2019-2020*)

Direct Student Aid by Source (AY 2019-2020*)

* Direct student aid includes aid that is generally available, goes directly to students, and derives from state and federal appropriations, plus institutional grants.
**The State of Texas, like other state governments, also supports public institutions through direct appropriations and tuition waivers.
Sources: Aid in Texas: Texas Higher Education Coordinating Board, Report on Student Financial Aid in Texas Higher Education, Fiscal Year 2020 (http://reportcenter.thecb.state.tx.us/reports/data/report-on-student-financial-aid-in-texas-higher-education-for-fy-2020/); Aid in the U.S.: The College Board. Trends in Student Aid 2021 (http://trends.collegeboard.org/).

Nearly Half of Aid is in the Form of Loans

In Texas and nationally, less than half of student aid has been in the form of loans and over half of the aid came from grants, including state and institutional grants.* Most student loans in Texas and nationwide are Federal Direct Loans.

One percent of student aid in Texas and nationally comes from work-study dollars. The Federal Work-Study Program provides part-time jobs to students with financial need. Whether on campus or off campus, the program encourages employment related to the student’s course of study whenever possible.

Students may also receive tuition exemptions or waivers from their institutions. This type of aid is not included in the data in the chart due to data unavailability at the national level.

Direct* Student Aid by Type (AY 2019-2020)

Direct* Student Aid by Type (AY 2019-2020)

* Direct student aid includes aid that is generally available, goes directly to students, and derives from state and federal appropriations (including both FFELP and FDLP loans), plus institutional grants.
Sources: Aid in Texas: Texas Higher Education Coordinating Board, Report on Student Financial Aid in Texas Higher Education, Fiscal Year 2020 (http://reportcenter.thecb.state.tx.us/reports/data/report-on-student-financial-aid-in-texas-higher-education-for-fy-2020/); Aid in the U.S.: The College Board. Trends in Student Aid 2021 (http://trends.collegeboard.org/). 

Texas Public Institution Students Are Most Heavily Dependent on Federal Student Aid

Students enrolled in the Texas public two-year sector are the most dependent on the federal government for their financial aid, followed by students in the public four-year sector. Students in the public four-year sector receive more state support, proportionally, than those in the two-year sector.

Direct Student Aid by Source in Texas, by Sector (AY 2019-2020*)

Direct Student Aid by Source in Texas, by Sector (AY 2019-2020*)

Direct student aid in all sectors in Texas is more likely to be grants than loans. Grant aid made up a little more than half of the aid dollars in the public and private, not-for-profit four-year sectors, and 69 percent of the aid in the public two-year sector. In all sectors, work-study aid encompasses less than one percent of total student aid.

Direct Student Aid From All Sources by Type in Texas, by Sector (AY 2019-2020*)

Direct Student Aid From All Sources by Type in Texas, by Sector (AY 2019-2020*)

* Direct student aid includes aid that is generally available, goes directly to students, and derives from state and federal appropriations (including both FFELP and FDLP loans), plus institutional grants. Comparable aid data for the private for-profit (proprietary) sector is unavailable. Work-study aid is not included in this chart. It accounted for less than one percent of direct student aid in all sectors. Totals may not add to 100 percent due to rounding.
** Tuition exemptions and waivers are included in institutional aid for the public sectors.
*** Data on tuition exemptions and waivers is included in the Grants category.
Sources: Texas Higher Education Coordinating Board, Report on Student Financial Aid in Texas Higher Education, Fiscal Year 2020 (http://reportcenter.thecb.state.tx.us/reports/data/report-on-student-financial-aid-in-texas-higher-education-for-fy-2020/).

Students at Public Institutions in Texas Benefited from $842 Million in Exemptions and Waivers

There are 30 mandatory tuition exemption and waiver programs in Texas that public institutions are required to offer to eligible students. Another 24 optional exemption and waiver programs are available to institutions. Students who are eligible for an exemption or waiver will see their billing adjusted accordingly, and the school will absorb the waived or exempted portion of expenses as foregone revenue. The programs may have financial need and/or merit components for initial eligibility as well as for continuing awards.

The largest exemption program in fiscal year (FY) 2020 was the Hazlewood Exemption, a mandatory exemption program for veterans and their families. The largest waiver programs were for merit-based scholarships for students and mandatory waivers for teaching or research assistants.

Although 16 percent of the total number of students receiving exemptions and waivers were from community colleges, only six percent of the dollars exempted or waived went to community college students. This is due to higher tuition costs at universities.

FY 2020 Total Exemptions and Waivers Dollars, in Millions

FY 2020 Total Exemptions and Waivers Dollars, in Millions

FY 2020 Number of Recipients of Exemptions and Waivers

FY 2020 Number of Recipients of Exemptions and Waivers

Sources: Texas Higher Education Coordinating Board, Report on Student Financial Aid in Texas Higher Education, Fiscal Year 2020 (http://reportcenter.thecb.state.tx.us/reports/data/report-on-student-financial-aid-in-texas-higher-education-for-fy-2020/).

States Have Increased Support for Higher Education Over the Past Five Years

Nationally, state support for higher education has increased by about three percent over the past five years, from $102.0 billion in fiscal year (FY) 2017 (inflation adjusted to 2022 dollars) to $105.4 billion in FY 2022. California and Florida saw even larger increases over that same time period, while the other large states saw decreases. Texas had a decrease of two percent between FY 2017 and FY 2022.

State Fiscal Support for Higher Education, by State and Year, in 2022 Dollars

State Fiscal Support for Higher Education, by State and Year, in 2022 Dollars

Many states allocate additional state support to higher education beyond tax appropriations. Sources for the additional state support are numerous and could include things like lottery monies, oil/mineral extraction fees on certain land, and interest on state-funded endowments. Three of the six most populous states did not provide additional state support outside of tax appropriations. About nine percent of state support for higher education in Texas comes from sources other than tax appropriations, larger than the national average of six percent. Federal stimulus funds* also made up some of the higher education support in FY 2022. In Texas, seven percent of higher education support came from federal stimulus funds.

Percentage of State Higher Education Support by Type and State, FY 2022

Percentage of State Higher Education Support by Type and State, FY 2022

*This includes federal stimulus funding allocated to states for higher education. It excludes funds (such as HEERF) allocated directly to institutions or students.
Sources: State Higher Education Finance, Grapevine report on state fiscal support for higher education, 2022 (https://shef.sheeo.org/grapevine/).

Community College Total Tax Revenue Saw Recent Declines

The estimated total tax revenue for all community colleges in Texas was just over $2.7 billion in 2022. The total tax revenue has increased nearly every year over the past two decades, making up an increasing share of overall community college revenue, though 2022 brought a slight decline. The vast majority of tax revenue came from colleges in city locations. Rural colleges made up the smallest share of tax revenue.

Estimated Total Tax Revenue of Texas Community Colleges, by Year, in Millions of Dollars (Adjusted to 2022 Dollars)

Estimated Total Tax Revenue of Texas Community Colleges, by Year, in Millions of Dollars (Adjusted to 2022 Dollars)

Estimated Total Tax Revenue of Texas Community Colleges, by Year and Location Type, in Millions of Dollars (Adjusted to 2022 Dollars)

Estimated Total Tax Revenue of Texas Community Colleges, by Year and Location Type, in Millions of Dollars (Adjusted to 2022 Dollars)

Note: Some community college districts have a mandatory tax rate freeze for certain citizens. The above figures are estimates based on projected tax rates and district valuation, not the actual amount collected by the district.
Sources: : Texas Association of Community Colleges (TACC), Tax & Valuation Survey Results (https://tacc.org/tacc/college-data).

Public Educational Appropriations Decreased in Texas Over the Last Ten Years

Net tuition as a percent of total education revenue has consistently increased for decades. In 1980, net tuition made up 21 percent of total educational revenue on average nationwide; this increased to 44 percent by 2020. Half of all U.S. states in 2020 were receiving over 50 percent of their educational revenue from tuition. In Texas, the percent of total education revenue made up by tuition has increased from 19 percent in 1980 to 40 percent in 2020.

Texas and the U.S. have seen an increase in tuition revenue over the last ten years, with Texas experiencing a ten percent increase and the U.S. experiencing a 26 percent increase during that time period. However, both in Texas and nationwide, there was a decrease in tuition revenue between 2019 and 2020. While the U.S. has experienced increases in public educational appropriations over the last ten years, Texas saw a 17 percent decrease between 2010 and 2020.

Percent Change in Public Higher Education Net Tuition Revenue Per Full-Time Equivalent Student (Constant Adjusted 2020 Dollars)

Percent Change in Public Higher Education Net Tuition Revenue Per Full-Time Equivalent Student (Constant Adjusted 2020 Dollars)

Percent Change in Public Educational Appropriations Per Full-Time Equivalent Student
(Constant Adjusted 2020 Dollars)

Percent Change in Public Educational Appropriations Per Full-Time Equivalent Student (Constant Adjusted 2020 Dollars)

Sources: State Higher Education Executive Officers Association (SHEEO), State Higher Education Finance: FY 2020 (https://shef.sheeo.org/wp-content/uploads/2021/05/SHEEO_SHEF_FY20_Report.pdf).

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