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Financial Aid Requirement

In accordance with Texas Education Code (TEC), §28.0256, each student must do one of the following in order to graduate:  

• Complete and submit a Free Application for Federal Student Aid (FAFSA);
• Complete and submit a Texas Application for State Financial Aid (TASFA); or
• Submit a signed opt-out form.

Visit the webpage to learn more about the FAFSA, or to apply for aid.  For more information regarding the TASFA, please visit the webpage.  

Laws and Rules

In 2019, the 86th Texas Legislature established the new requirement for Texas students to complete a financial aid application (or formally opt out) in order to graduate.  The State Board of Education (SBOE) adopted rules related to the new requirement in January 2021.  

House Bill (HB) 3 required the commissioner to adopt rules as necessary to implement the requirement.  These rules were drafted in consultation with a statewide advisory committee and were published in October 2021.  

Opting Out

A student may opt out of the financial aid application graduation requirement if:  

• a parent or guardian submits a signed form;
• the student is 18 years of age or older and submits a signed form; or
• a school counselor authorizes the student to decline to complete and submit the application for good cause.

Financial Aid Application Opt-Out Form

• Financial Aid Application Opt-Out Form
• Financial Aid Application Opt-Out Form (Spanish)

Reporting

Districts will be required to report the financial aid application graduation requirement in TSDS PEIMS for each student.  To track students' completion of the graduation requirement for the student record, this data element will also be entered in the Texas Records Exchange (TREx) System. Data standards for the TREx System have been published.  

The SBOE has also given approval to update the rules for the academic achievement record to require documentation of the new graduation requirement.  The proposed amendment was adopted at the April 2021 SBOE meeting. 

Training and Resources

School Counselors and advisors can build their familiarity and capacity to support students through the financial aid application process now with many quality resources and tools: 

• ÁñÁ«ÊÓÆÁ has developed the following tools and resources to assist with the implementation of the graduation requirement:
  • Frequently Asked Questions
  • Opt-Out Form Guidance Document
  • Student Notification Guidance Document
•   ÁñÁ«ÊÓÆÁ has partnered with Texas OnCourse to produce a hub of financial aid completion resources including toolkits for students, parents, educators, and community partners.
• offers free online asynchronous training for educators.  Three key modules will support foundational knowledge of financial aid applications and processes.
  • Basic Principles of Financial Aid
  • FAFSA
  • TASFA
• enables districts to access FAFSA completion data for their students.
• is the definitive source for information on the FAFSA and federal aid processes.