The Tuition Equalization Grant (TEG) is Texas's state grant for residents at private nonprofit colleges in Texas: up to $4,270 a year for 2026-27, or $6,405 for undergraduates with exceptional financial need, per the Texas Higher Education Coordinating Board's (THECB) FY2027 guidelines. Its purpose is in the name: it narrows the gap between private and public tuition for Texas students with need.
How much TEG pays
| 2026-27 | Annual maximum |
|---|---|
| Standard | $4,270 |
| Exceptional need (undergraduates with SAI of $3,697.50 or less) | $6,405 |
The exceptional-need threshold is half of the federal Pell Grant eligibility cap -- $3,697.50 for 2026-27, based on a $7,395 maximum Pell Grant. Grants for fall, spring, and summer together can't exceed the annual maximum.
How your TEG award is calculated
THECB caps your TEG at the smallest of three numbers:
- Your financial need -- cost of attendance minus your Student Aid Index.
- The annual maximum -- $4,270 or $6,405.
- Your tuition differential -- what your private college charges in tuition minus what a comparable Texas public university would.
The tuition differential uses average public tuition per credit hour, set each year by THECB according to the highest degree a college offers:
| Comparable public institution level | Undergraduate tuition per credit hour (2026-27) | Graduate tuition per credit hour |
|---|---|---|
| Baccalaureate (Level 2) | $79 | -- |
| Master's (Level 3) | $216 | $318 |
| Three or fewer doctoral degrees (Level 5) | $212 | $264 |
| Four or more doctoral degrees (Level 6) | $262 | $350 |
At most private colleges, tuition is high enough that the differential exceeds the TEG maximum, so need and the cap decide the award. Fees aren't included in the calculation -- only tuition.
Who's eligible
To receive TEG, you must:
- be a Texas resident with financial need, who filed the FAFSA or TASFA;
- enroll at least 3/4-time in a first associate, bachelor's, master's, professional, or doctoral degree program at an eligible private or independent Texas college;
- pay more tuition than you'd pay at a comparable public college;
- not be receiving an athletic scholarship that requires you to play an intercollegiate sport;
- maintain satisfactory academic progress.
Eligible colleges are private or independent Texas institutions accredited through the Southern Association of Colleges and Schools Commission on Colleges that sign a participation agreement with THECB. Check with your college's financial aid office.
Keeping it
After the second year, undergraduates must complete 24 credit hours in the most recent year with a 75% completion rate and a 2.5 cumulative GPA; graduate students need 18 hours with the same rate and GPA. Undergraduates can receive TEG for up to 5 years (6 for longer programs); there's no time limit for graduate and professional students.
What this means for you
- Compare private and public offers net of TEG. At a private Texas college, TEG plus institutional aid can narrow the gap more than the sticker price suggests.
- File the FAFSA or TASFA early, by your college's own priority date. The state's January 15 priority deadline is set for public universities, not TEG, so private colleges set their own -- and funding is limited.
- Know your SAI. At $3,697.50 or below, your maximum rises by half again.
- Choosing a public university instead? The TEXAS Grant is the equivalent there.