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Need To Know: House Bill 3 Financial Aid Graduation Requirement

By: TxCAN and Texas OnCourse   |   September 2021

Learn about the House Bill 3 Financial Aid Application Requirement going into effect in Fall 2021.

For counselors around Texas, House Bill 3 (HB3), which was passed by the 86th Texas Legislature in 2019, significantly impacts college access work on high school campuses, as it added a financial aid graduation requirement that will affect the high school graduating classes of 2022 and beyond.

The Texas Education Code states that:

“Before graduating from high school, each student must complete and submit a free application for federal student aid (FAFSA) OR a Texas application for state financial aid (TASFA)”.

However, the code also provides students and parents the option to opt-out through the use of a form that the Texas Education Agency (TEA) has provided in both English and Spanish.

Districts will be required to report the financial aid application graduation requirement in TSDS PEIMS for each student by indicating whether each student submitted the FAFSA, the TASFA, or the signed opt-out agreement. Therefore, counselors will be required to keep track of FAFSA completion, TASFA completion, and opt-out forms for students on their campus.

Take a look at this video presentation below from Texas OnCourse for more details:

Texas OnCourse Presentation Video

For additional information and resources on the HB3 Financial Aid Requirement, financial aid training, and FAFSA/TASFA/Opt-Out Form tracking, check out the following resources:

Texas OnCourse Financial Aid Requirement Website

TEA Financial Aid Requirement Webpage


The Texas College Access Network (TxCAN) connects and supports college access initiatives across Texas, with the goal of increasing access to college and certificate programs.

Texas OnCourse, a state-funded initiative for educators, students, and families that provides access to free and trustworthy resources on college and career planning.​