Advocates say the grants help low- and middle-income students graduate and then contribute to the workforce. More Information Texas universities financial aid disbursements in 2015 from tuition set-aside program Texas A&M University: $35.05 million University of Texas at Austin: $34.35 million University of Houston: $21.66 million Texas Southern University: $6.08 million The set-aside program began in 2003 when Texas lawmakers deregulated tuition rates. While colleges were allowed to set their own tuition rates for the first time, the law required 15 percent of subsequent tuition increases to be set aside for financial aid, a condition lawmakers hoped would keep college affordable. Average in-state tuition at Texas’ four-year universities, however, has soared since then from $3,361 to $8,669 a year. Additionally, a 1975 law requires universities to earmark 15 percent of the first $50 per semester credit hour they charge for financial aid. Texas Higher Education Commissioner Raymund Paredes said earlier this month that eliminating tuition set-asides without replacing the grants in some form would prevent some lower-income students, including many students of color, from having the chance to earn a college degree. The cost of college is a “serious issue,” he said. “We need some sort of (replacement) plan.” University leaders and lawmakers have placed the blame on each another for escalating tuition. College officials say they have to charge more to keep up with increasing operating costs and more stringent man-dates with smaller state appropriations. Lawmakers counter that institutions need to increase efficiencies and trim their operating budgets, rather than increasing prices. Rep.
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