Undocumented immigrants constitute about 3.5% of the current US population and Texas ranks second, after California, in the number of unauthorized immigrant population. Annually, about 65,000 undocumented children graduate from American high schools. Using the variation provided by the in-state resident tuition policy of Texas, the author estimates the effect of changes in college costs resulting from the in-state resident tuition reforms on educational decisions of undocumented immigrants in Texas. Specifically, the author employs a difference-in-differences technique to estimate the impact of in-state tuition on probability of graduation, type of degree and choice of major for undocumented immigrants. Comparing undocumented Hispanics to the U.S. born Hispanics, the author finds that the reduced college costs significantly increased the graduation rate for undocumented immigrants enrolled in community colleges, but had no significant impact on students in four-year universities. The policy increased the probability of graduating with an academic degree or an advanced certification from community colleges. The author also finds that policy had a larger impact for males than females. The effect of the policy on timely graduation and choice of major (academic or technical) is unclear and is sensitive to the choice of specification. The evidence presented in this paper suggests that the in-state resident tuition policy reduced the gap in opportunities for higher education, but its impact was primarily concentrated among students enrolled in community colleges.