It’s a program that many universities have as a benefit to their employees. Participating universities have a certain number of scholarships (tuition exchange) for students whose parents work at a university. Just because a student applies to university in the tuition exchange program doesn’t mean they will get the scholarship; it just means it is a possibility.
@haileycruz, have you looked at this thread? Tuition Exchange for Fall 2022 Freshman applicants (Class of 2026) I think someone mentioned getting a Tulane TE.