AUSTIN, Tx (BY SHANNON NAJMABADI, THE TEXAS TRIBUNE) -- Seeking to make college more affordable, the University of Texas will use some of its oil money to dramatically expand the financial aid it offers to low- and middle-income undergraduates on its flagship Austin campus.
The system's governing board approved a special $160 million distribution from its endowment Tuesday, which school officials expect will fully cover the tuition and fees of students whose families earn up to $65,000 in adjusted gross income a year starting in 2020. The funding, which will be used to create a new financial aid endowment, will also let UT-Austin alleviate tuition costs for students whose families earn up to $125,000 annually, if they demonstrate financial need.
“Our main focus at the UT system is our students. That's it, that's what we're in business for is to provide an affordable, accessible education for our students," board Chair Kevin Eltife said in an interview after the vote. "We all know the struggles that hardworking families are having putting their kids through school. What we've done here is repurposed an endowment into another endowment that will provide tuition assistance to a lot of the working families in Texas."
The funding marks a significant expansion for UT-Austin, which currently has a financial aid initiative that guarantees free tuition to students whose families earn up to $30,000 a year. The median household income in Texas was just over $59,200 in 2017, according to U.S. Census Bureau data.