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The Texas Higher Education Coordinating Board (THECB) Program Guidelines are intended to support institutions by highlighting requirements that appear in the Texas Education Code (TEC) and Texas Administrative Code (TAC).

When administering this program, institutions should always refer to the relevant statutes and rules. The information in this document is to be used solely as a resource and does not override the statute or rules for this program.

Program Eligibility

To receive an Initial Year (IY) grant, a student must:

• Be a Texas resident.
• Be registered with Selective Service, or be exempt (see Selective Service Statement).
• Have applied for any available financial aid.
• Have financial need.
• Be enrolled at least 3/4 time.
• Not have earned a baccalaureate degree.
• Not have been convicted of:
  • Any felony.
  • Any offense under the law of any jurisdiction involving a controlled substance as defined by Health and Safety Code, Title 6, Chapter 481.
• Be enrolled in a baccalaureate degree program at a public four-year or HRI institution as a first-time undergraduate and qualify through one of the following four pathways:
  • High School Graduation Pathway: Graduation from an accredited public or private high school in Texas and enrollment at an approved institution before the end of the 16th month after high school graduation. The student must not have attempted more than 30 semester credit hours (SCHs), excluding credits for dual enrollment or by examination.
  • Associate Degree Pathway: Enrollment in an eligible institution before the end of the 12thmonth after the calendar month in which the student earned an associate degree from a public or private nonprofit Texas institution of higher education.
  • Honorable Military Discharge Pathway: Enrollment in an eligible institution of higher education no later than 12 months after being released from active-duty military service with an Honorable Discharge, General Discharge under Honorable Conditions, or Honorable Separation or Release from Active Duty, as documented by a Certificate of Release or Discharge from Active Duty (DD214) issued by the Department of Defense. Enlistment in the military must have occurred within 12 months after graduation from an accredited public or private high school in Texas. The student must not have attempted more than 30 semester credit hours (SCHs), excluding credits for dual enrollment or by examination.
  • TEOG Transfer Pathway: Completion of at least 24 SCHs with a minimum 2.5 GPA after receiving an IY Texas Educational Opportunity Grant (TEOG) in fall 2014 or later and transferring to an eligible institution with a minimum 2.5 GPA.

Priority Student Aid Index

The priority SAI set by the THECB should serve as a method for prioritizing IY grants for eligible students and is not an eligibility requirement to receive a grant. The calculated priority SAI for 2025-26 is $6,514.

After all students meeting priority criteria are offered a grant, remaining funds may be offered to students who meet IY eligibility requirements and qualify through one of the four pathways:

• High School Graduation
• Associate Degree
• Honorable Military Discharge
• TEOG Transfer