College affordability has been an urgent concern in the context of Texas higher education. In September 2003, the Texas Legislature passed HB 3015 (2003) to allow governing boards of public universities to set different designated tuition rates, with no upper limit. As a result, tuition at four-year colleges and universities in Texas has remarkably increased since 2003. College affordability is vital to college access and success. The college affordability issue is very salient in the context of Texas higher education, particularly at four-year public institutions because of tuition increases caused by tuition deregulation since 2003. Although students primarily use federal aid to reduce the cost of college education, state-level financial aid also plays a critical role in shaping college affordability for all students, but especially low-income students. However, extant research does not offer clear evidence of how state-supported financial aid affects student outcomes in Texas, particularly for offsetting college costs. Using longitudinal administrative data from the Texas Education Research Center and event history modeling, this study sought to answer two research questions: (1) How does state-supported financial aid, broken down by programs of financial aid, impact baccalaureate degree completion? (2) How do the effects of state-supported financial aid on baccalaureate degree completion vary across income status and race? The findings suggest that it is necessary to explore effective strategies to increase student outcomes and reduce the inequality in educational opportunity across students by utilizing financial aid where in theory the chances of graduation heavily depend on financial resources to pay for college. Ultimately, the role of state-supported financial aid, coupled with other financial resources, is vital to ensure college affordability and student success in an era of rising costs of higher education in Texas.