This report covers TEA’s video on HB 3’s section on FAFSA. The video highlights the new high school graduation requirements including options for students to complete the FASFA, TASFA or receive an exemption by opting out. Additionally, it focuses on new reporting requirements and advisory committees for school districts.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

  • HB 3 creates a new graduation requirement that will begin in 2021-2022 school year
  • HB 3 requires the commissioner of education to adopt administrative rules.
    • These rules will define what successful completion of the FAFSA or TAFSA will be.
    • Criteria for the exception options will be included in these rules.
  • TEA will provide resources such as opt-out forms, standard notification documents and a toolkit to provide help to counselors and administrators.
  • The commissioner will also adopt rules for school district requirements.
  • Districts are now required to provide students with specific information that includes resources for the FAFSA, TASFA and opt-out.
    • Districts are now required to report to TEA the number of students who have completed the options for aid or opt-out.
    • This information will be reported in TSDS PEIMS for each student.
    • Anticipate new administrative rule may address providing notification at same time as automatic college admission
  • TEA has recommended that the State Board of Education amend their rules in early 2021 and will be effective beginning the 2021-2022 school year.
    • Add the financial aid application to graduation requirements consistent with other graduation requirements
    • Require document of completion or exception on student transcripts, also consistent with other graduation requirements
  • The video goes in-depth in detailing the FAFSA, TASFA and opt-out options.
  • TEA will work on forming a team for to support students and administrators.
  • Counselors are able to use ApplyTexas to track student data concerning FAFSA completion.
    • Districts must enter into an MOU with THECB and counselors must register for an account.
  • TASFA – for students who are not eligible for federal financial aid, students who are classified at Texas Residents who cannot apply for federal aid
  • HB 2140 from 86th requires THECB to adopt procedures to allow students to complete and submit a common TASFA form by electronic submission
  • Students can opt out with guardian/students 18 years of age by submitting a signed form
  • TEA will not approve forms submitted by districts, TEA will develop and make available this option on TEA website  
  • Districts will enter financial aid application data (number submitted, completed or opt out)
  • A new data element and code table will be added to TSDS PIEMS in 2022-2023 school year
  • Districts will also need to indicate this requirement has been met on high school transcript (May/June 2022)
  • Summary: Districts will enter financial aid application data in their local student information systems beginning with  students enrolled in 12th grade during the 2021-2022 school year. In 2022-2023, districts will begin reporting financial aid application completion data in TSDS PEIMS on the graduate record in fall (Submissions 1).
  • TEA will implement this HB 3 requirement with recommendations from an advisory committee.
    • The committee will consist of school counselors, administrators and stakeholders and is expected to meet four to six times in 2020.
    • The committee will make recommendations regarding FAFSA, TASFA and opt-out resources and methods of collecting information.
    • Recommendations must be completed by December 2020.
  • Next steps for districts:
    • Identify local partners who can provide additional assistance as soon as possible
    • Initiate an MOU to access the ApplyTexas Counselor Suite with THECB if there is not already on in place for your school or district
    • Encourage counselors to take the Texas OnCourse modules on FAFSA and TASFA now and participate in GenTX initiatives to promote the applications
    • Contact your ESC for more information about training, resources, activities, and potential partners in your region
    • Start building capacity and increasing FAFSA and TASFA completion rates with seniors in 2019-202 and 2020-2021 to prepare for the implementation of the requirement in 2021-2022.