1. (a) Formula-Funded Courses. Notwithstanding any other rule, an exemption or waiver from the payment of tuition or fees offered under this subchapter may be applied only to courses for which an institution of higher education receives formula funding.

2. (b) Excess Hours. An undergraduate student is ineligible to receive an exemption under this subchapter if, at the start of a semester or term, the student has completed a number of semester credit hours that is considered to be excessive under Texas Education Code, §54.014, excluding semester credit hours earned:

   1. (1) exclusively by examination;
   2. (2) for a course for which the student received credit toward the student's high school academic requirements; and
   3. (3) for developmental courses that the student's institution required the student to take under Texas Education Code, chapter 51, subchapter F-1.
3. (c) Legal Status. Notwithstanding any other rule, a student must be lawfully present in the United States to be eligible for any exemption or waiver under this subchapter.

Source Note:The provisions of this §13.465 adopted to be effective November 13, 2025, 50 TexReg 7253.