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Megargel is served by the Olney Independent School District.Megargel was served by the Megargel Independent School District.1,200 people lived in Megargel in 1927, but the population began a decline after that point. The number of residents was 347 by 1950, 244 in 1990, 248 in 2000, and 203 in 2010.In 2014 there were 130 active water meters out of the 200 in Megargel, and many houses were unoccupied.31.7% of all households were made up of individuals and 8.7% had someone living alone who was 65 years of age or older.The average household size was 2.38 and the average family size was 2.97. For every 100 females age 18 and over, there were 116.1 males.Time stamp, IP and website source are also included with each record.

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The school board has voted to consolidate with Olney ISD, the neighboring school district in Olney, Texas (about 12 miles southeast), subject to voter approval on May 13, 2006.

Proponents argued that the school (which had only 63 students, including only one in seventh grade) simply cannot continue to function, and consolidation with the neighboring district (which had nearly 800 students) would provide more opportunities for educational achievement.

Opponents feared that closure of the school would cause the town to disappear.

In the town, the population was spread out with 24.2% under the age of 18, 5.6% from 18 to 24, 29.0% from 25 to 44, 26.6% from 45 to 64, and 14.5% who were 65 years of age or older. The median income for a household in the town was ,000, and the median income for a family was ,250.

Males had a median income of ,429 versus ,750 for females. About 4.2% of families and 4.3% of the population were below the poverty line, including 1.8% of those under the age of eighteen and none of those sixty five or over.

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