New Endowment at UT Austin to Cover All Tuition for Families Earning Up to $65K

The University of Texas System Board of Regents announced last week that UT Austin will increase tuition assistance for those from middle- and low-income families and make the state’s flagship research university even more affordable.

Under the leadership of Chairman Kevin Eltife and Chancellor James B. Milliken, the regents voted unanimously Tuesday to establish a $160 million endowment from a distribution of the state’s Permanent University Fund that will generate money for financial assistance beginning in fall 2020.

The new endowment will be used to expand UT Austin’s Texas Advance Commitment program for in-state undergraduate students to:

–Completely cover tuition and fees for students from families that earn up to $65,000 a year who have financial need, and,

–Provide some assured tuition support to students from families with incomes of up to $125,000 who have financial need.

The median household income in Texas was $59,206 in 2017, according to the U.S. Census Bureau.

The endowment will support undergraduates from across Texas, including first-year through fourth-year and transfer students.

The Permanent University Fund includes money from oil and gas royalties earned on state-owned land in West Texas.

In awarding financial aid to middle- and low-income students, the university will continue to draw from multiple sources, including federal Pell grants, and the TEXAS Grants program, which received additional support from the Texas Legislature this year. The funds from the new endowment will then be used to supplement grants and scholarships. The Texas Advance Commitment does not rely on loans or require students to pay back any funds.

This latest support from the regents will allow UT Austin to provide:

–Full tuition coverage to more than 8,600 undergraduates a year from families that earn up to $65,000 a year,

–Assured tuition support to an additional 5,700 students from families that earn up to $125,000 a year.

This commitment to affordability represents a shared partnership among the university, state and federal governments, students and their families to cover the costs of a UT education and maintain the university as one of the best values in Texas and the U.S. In 2018, Kiplinger’s Best Value Colleges ranked UT Austin No. 8 in the nation.