The Complete Guide to Getting In-State Tuition in Texas as an Out-of-State Student

Everything you need to know about the Texas Competitive Scholarship Waiver and how to save over $60,000 on your college degree

Updated: January 202615 min read

What is the Texas Competitive Scholarship Waiver?

The Texas Competitive Scholarship Waiver is a state law that allows public universities in Texas to charge out-of-state students in-state tuition rates if they receive a competitive scholarship of at least $1,000 per academic year. This little-known provision can save students between $10,000 and $28,000 annually, depending on the university.

The waiver is codified in Texas Education Code Section 54.214 and is designed to help Texas universities attract high-achieving students from across the country and around the world. Unlike traditional residency waivers that require you to live in Texas for 12 months, the Competitive Scholarship Waiver is immediate and renewable as long as you maintain the scholarship.

Key Takeaway

If you receive a scholarship of $1,000 or more per year from a Texas public university, you automatically qualify to pay in-state tuition rates for all four years of your undergraduate degree.

How Much Money Can You Save?

The savings are substantial. Here's a breakdown of the average tuition difference at major Texas universities:

  • Texas Tech University: $12,306/year savings ($49,224 over 4 years)
  • University of Texas at Dallas: $14,000/year savings ($56,000 over 4 years)
  • Texas State University: $11,000/year savings ($44,000 over 4 years)
  • Texas A&M University: $23,000/year savings ($92,000 over 4 years)
  • University of Texas at Austin: $28,000/year savings ($112,000 over 4 years)

These savings apply to tuition only and don't include additional fees, housing, or living expenses. However, the tuition waiver alone can make attending a Texas university more affordable than many in-state options in other states.

Who Qualifies for the Waiver?

To qualify for the Texas Competitive Scholarship Waiver, you must meet three basic requirements:

  1. Be admitted to a Texas public university as a degree-seeking undergraduate student
  2. Receive a competitive scholarship of at least $1,000 per academic year from that university
  3. Maintain the scholarship requirements throughout your enrollment (typically a minimum GPA)

The waiver is available to both domestic out-of-state students and international students. There are no citizenship or visa restrictions. As long as you meet the scholarship threshold, you qualify.

What Scholarships Qualify?

Not all scholarships trigger the waiver. The scholarship must be:

  • Competitive: Awarded based on academic merit, talent, or achievement (not financial need alone)
  • At least $1,000 per year: Can be a single scholarship or multiple scholarships that total $1,000+
  • Funded by the university: Must come from university funds, not external organizations
  • Renewable: Must be available for multiple years (though you reapply annually)

The best scholarships are automatic merit scholarships that are awarded upon admission based on your GPA and SAT/ACT scores. These require no separate application and are guaranteed if you meet the published thresholds.

Automatic Scholarships: The Easiest Path to In-State Tuition

Many Texas universities offer automatic merit scholarships with clear, published criteria. If your academic profile meets the requirements, you'll receive the scholarship offer with your admission letter—no essays, interviews, or additional applications required.

Here are examples of automatic scholarship thresholds at popular Texas universities:

Texas Tech University

  • Presidential Merit Scholarship ($4,000/year): 3.5 GPA + 1300 SAT or 28 ACT
  • Provost Scholarship ($2,500/year): 3.3 GPA + 1200 SAT or 26 ACT

University of Texas at Dallas

  • Academic Excellence Scholarship ($8,000/year): 3.8 GPA + 1400 SAT or 31 ACT
  • Distinction Scholarship ($5,000/year): 3.5 GPA + 1300 SAT or 28 ACT

Texas State University

  • Terry Scholarship ($3,000/year): 3.5 GPA + 1250 SAT or 27 ACT
  • Achievement Scholarship ($2,000/year): 3.3 GPA + 1150 SAT or 25 ACT

These thresholds are based on unweighted GPA and can vary slightly by year. Always check the university's official scholarship page for the most current requirements.

Important Limitations and Rules

While the Texas Competitive Scholarship Waiver is generous, there are some important limitations to understand:

The 5% Cap Rule

Texas law limits the number of students who can receive the waiver to 5% of the university's total undergraduate enrollment. However, this cap is rarely reached at most universities, and high-achieving students are prioritized. If you qualify for an automatic scholarship, you're very likely to receive the waiver.

Not All Universities Participate

While the waiver is available at all Texas public universities, participation is optional. Most major universities participate actively, but some smaller regional universities may have limited scholarship budgets. Always confirm with the admissions office that the university participates in the waiver program.

Scholarship Must Be Renewed Annually

Most scholarships require you to maintain a minimum GPA (typically 3.0 or higher) and remain enrolled full-time. If you lose the scholarship, you lose the waiver and will be charged out-of-state tuition for the remaining semesters.

How to Apply: Step-by-Step Process

Securing the Texas Competitive Scholarship Waiver is straightforward if you follow these steps:

Step 1: Research Universities and Scholarship Thresholds

Use our eligibility calculator to identify which Texas universities you qualify for based on your GPA and test scores. Make a list of 3-5 target schools where you exceed the automatic scholarship thresholds.

Step 2: Apply for Admission

Submit your application through the university's standard admissions process. Most Texas universities use the ApplyTexas common application. Be sure to submit your official transcripts and SAT/ACT scores.

Step 3: Receive Your Scholarship Offer

If you meet the automatic scholarship criteria, you'll receive a scholarship offer letter along with your admission decision. This letter will specify the scholarship amount and confirm that it triggers the in-state tuition waiver.

Step 4: Accept the Offer and Enroll

Accept your admission and scholarship offer, pay your enrollment deposit, and register for classes. The in-state tuition rate will be automatically applied to your account—you don't need to fill out any additional forms.

Step 5: Maintain Your Scholarship

Keep your GPA above the scholarship's minimum requirement (usually 3.0) and remain enrolled full-time. As long as you maintain the scholarship, the waiver continues for all four years.

Frequently Asked Questions

Can international students use this waiver?

Yes! The Texas Competitive Scholarship Waiver is available to both domestic out-of-state students and international students. There are no citizenship or visa restrictions.

Do I need to live in Texas for 12 months first?

No. Unlike traditional residency waivers, the Competitive Scholarship Waiver is immediate. You can start paying in-state tuition from your first semester.

Can I combine this with other scholarships?

Yes. You can stack the waiver-triggering scholarship with other merit scholarships, need-based aid, and external scholarships. The $1,000 threshold can also be met by combining multiple university scholarships.

What happens if I lose my scholarship?

If you fail to maintain the scholarship's GPA or enrollment requirements, you will lose both the scholarship and the waiver. You'll be charged out-of-state tuition for the remaining semesters unless you qualify for traditional Texas residency.

Can transfer students use this waiver?

Yes. Transfer students from out-of-state or international institutions can qualify for the waiver if they receive a qualifying scholarship upon transfer admission.

Ready to Get Started?

The Texas Competitive Scholarship Waiver is one of the best-kept secrets in higher education. With the right academic profile, you can save tens of thousands of dollars on your college degree while attending a top-tier public university.

Find Your Matches

Use our calculator to see which Texas universities you qualify for based on your GPA and test scores

Additional Resources

Disclaimer: This guide is for informational purposes only. Scholarship availability, amounts, and waiver participation can change. Always verify current requirements with the university's admissions and financial aid offices before making enrollment decisions.