University of Texas to offer free tuition for families making less than $65,000 a year

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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.

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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.

Tuition and fees at UT for an in-state undergraduate student are $10,314 a year.

Student Zachary Henry tells Dallas News: "Money is a very personal subject, and a lot of people feel defeated by it. This guarantee is absolutely fantastic."