University of Texas expands free tuition help to families making less than $65K

In this Thursday, Sept. 27, 2012 photo, students walk through the University of Texas at Austin campus near the school's iconic tower in Austin, Texas. (AP Photo/Eric Gay)
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AUSTIN, Texas (AP) — The University of Texas will provide free tuition for undergraduate students from families earning less than $65,000 annually starting in fall 2020.

The University of Texas System Board of Regents on Tuesday approved creating a $160 million endowment for the tuition plan. School officials say it would cover an estimated 21 percent of new and enrolled undergraduate students.

Under current enrollment, more than 8,500 students would qualify for free tuition.

The endowment will also provide tuition help for in-state students with family incomes of $125,000 or less. The money comes of the university’s oil and gas rights royalties and will be used with federal and state tuition assistance programs already in place.

The tuition aid applies only to the university’s flagship Austin campus.