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Rice is like the best of the best here, pretty much. It's on par with Duke, Vanderbilt, etc.
UT Austin the best public school in the state, and it's academics are great, but it's ridiculously hard to get into if you're out of state. Generally very liberal, Austin is one of the few Democrat majority large cities in Texas.
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This needs to be somewhat qualified. Rice is the best undergraduate college in the state, but UT-Austin is the strongest overall university. UT has greater academic breadth and depth than every other school in Texas and all of its academic and professional programs rank in the top 10-20 in the country. Business, engineering, law, public affairs, architecture, film, computer science, chemistry, physics, education, pharmacy, social work... really every department UT has is ranked among the top in the country, which is something few other universities in Texas (or otherwise) can say.
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2. What is your area of interest? If it's engineering, TAMU. If it's not, UT-Austin.
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A&M is excellent in engineering (and does have programs like agricultural engineering that UT-Austin does not), but UT-Austin really does have one of the top programs in the country. In terms of faculty in the National Academy of Engineering UT has more than Rice, A&M, and every other school in Texas - combined.