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A tuition rebate program was created by Senate Bill 1907, 75^th  Texas Legislature, and is authorized by Section 54.0065 of the Texas Education Code.

The purpose of this program is to provide tuition rebates that will provide a financial incentive for students to prepare for university studies while completing their high school work, avail themselves of academic counseling, make early career decisions, and complete their baccalaureate studies with as few extraneous courses as possible. Minimizing the number of courses taken by students results in financial savings to students, parents, and the state.

To be eligible for rebates under this program, students must meet all of the following conditions:

1. They must have enrolled for the first time in an institution of higher education in the fall 1997 semester or later;
   
   
2. They must have received a baccalaureate degree from a Texas public university;
   
   
3. They must have been a resident of Texas and entitled to pay resident tuition at all times while pursuing the degree; and
   
   
4. They must have attempted no more than three hours in excess of the minimum number of semester credit hours required to complete the degree under the catalog under which they were graduated.