University of Texas announces free tuition for families earning $100K or less

The University of Texas system is moving to offer free tuition for students of families that make up to $100,000 per year, beginning next fall.

The university system's board gave preliminary approval on Wednesday to allow qualifying undergraduate students attending any of its nine academic institutions to receive free tuition and have all fees waived.

The Board of Regents will vote on, and is expected to pass, the tuition plan on Thursday.

If approved, the plan includes an immediate infusion of $35 million directly to the campuses and directs additional investments to further support financial aid and tuition relief.

"To be in a position to make sure our students can attend a UT institution without accruing more debt is very important to all of us, and as long as we are here, we will continue our work to provide an affordable, accessible education to all who choose to attend a UT institution," Kevin P. Eltife, chairman of the Board of Regents, said in a press release Wednesday.

The university system, which is the largest university system in Texas and one of the largest public university systems in the United States, said the aid comes from endowment distributions, the Available University Fund and other resources.

The financial burden of a college education is massive for many American families. According to the UT system, 56% of students attending the state's universities receive some form of financial aid.

"What is particularly gratifying to me, and to UT presidents, is that the Regents are not only addressing immediate needs of our current students, but they are taking the long view, ensuring that future generations will continue to benefit from this remarkable program," UT System Chancellor James B. Milliken said in the release.

Even before the free tuition announcement, there has been a steady decline in UT student debt over the past five years, which is 10% lower, on average, than across all public four-year universities in Texas, according to a report by the UT system in September.

"Across UT institutions, enrollment is growing, and student debt is declining, indicating success in both access and affordability. That's a rare trend in American higher education, and I'm proud the UT System is in a position to be a leader," Milliken said.

The University of Texas' nine public universities are located in Arlington, Austin, Dallas, El Paso, Permian Basin, Rio Grande Valley, San Antonio and Tyler.

The UT system's push to offer financial relief to students comes the same week that the Massachusetts Institute of Technology announced students with family income below $200,000 can expect to attend the Cambridge institution tuition-free starting next fall.

The bulk of American households meet this income threshold, according to MIT, which says the new policy will cover 80% of its incoming classes.