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What It Means for Students & Parents
A Shifting Financial Aid Landscape
Did you know there's a wave of US universities that are making college more affordable and accessible? Now the University of Texas is joining the list: announcing expanded financial aid support, including tuition-free education opportunities for a growing number of in-state students, beginning in 2025.
US schools have been announcing efforts to increase need-based financial aid to increase inclusion and affordability.
On November 20, 2024 the University of Texas (UT) jumped on the financial-aid bandwagon, announcing plans to raise the income limit for tuition-free attendance.
Now students from families with incomes up to $100,000 will be eligible to attend the University of Texas without paying tuition or fees, beginning in 2025.
Raises income threshold for full tuition benefit to $100,000, up from $65,000
Raises income threshold for partial tuition benefit to $125,000
Students must be Texas residents enrolled full-time as undergraduates to be eligible
This promise of increased affordability and access marks an expansion of the UT Promise Plus initiative — an endowment used to help students from lower-income backgrounds attend school for less. This initiative, which is called Texas Advance Commitment (TAC) at UT Austin, will also provide partial tuition support for students from families earning under $125,000.
However, one important limitation is that to qualify for these financial aid benefits, students must be Texas residents, enroll full-time in undergraduate programs, and apply for applicable federal and state financial aid.
This is great news for future Longhorns excited about attending the highly ranked University of Texas at Austin despite coming from families with smaller incomes. In fact, the UT financial aid expansion is projected to benefit an additional 3,000 additional families beginning in 2025.
Here are the essential eligibility requirements students need to satisfy:
Income Level | Benefits | Change Beginning in 2025 |
---|---|---|
Below $100,000 | Attend UT tuition-free | Threshold increasing from $65,000 to $100,000 |
Below $125,000 | Partial tuition offset | Threshold increasing from $65,000 to $125,000 |
Source: UT News, 22 November, 2024
These commitments help students access a high-quality public university educational experience with less financial strain. According to UT News, TAC investments, along with other forms of financial aid and scholarships have already reduced the average net tuition paid by in-state undergraduates to about $4,000 a year.
The University of Texas is one of the largest public university systems in the US, and its flagship Austin campus is a destination for many highly motivated young scholars, ranked #30 in the nation by US News and World Report.
Unfortunately, only in-state students are eligible for these UT need-based tuition scholarships, so this news doesn’t impact the many out-of-state and international students with their eyes on UT Austin — a campus that has about a 10% acceptance rate for out-of-state applicants.
The good news is that UT is just one of many universities rolling out expanded financial aid offerings in 2024 and 2025.
For example, one of the best universities in the US and the world, MIT, announced a significant expansion of financial aid eligibility on the same day as UT’s announcement.
Tuition-Free MIT in 2025: Why MIT May Become More Affordable Than Ever Before
But, MIT and UT are not alone… Recently other universities have also been announcing plans to increase affordability and access, including:
What does this shifting financial aid landscape mean for students? Above all, it means that you shouldn’t let “sticker prices” drive your decision making about which schools belong on your application list and which don’t.
Instead, you should focus on which schools, academically, are the best picks for your list of reach, target, and safety schools rather than choosing “affordable” vs. “not affordable” schools.
That said, financial aid offerings — and eligibility requirements — do vary from school to school, so be sure to research the costs of attending schools that you’re targeting, including availing yourself of the school’s financial aid calculator, if one is offered. You may also want to discuss your options with a qualified college counselor who can help.
And remember, Crimson Education strategists are great resources for navigating all aspects of your college journey. They help thousands of students every year develop well-researched and balanced lists of target schools! With personalized application support across the application process, our students are 7x more likely on average to get accepted:
That's right, almost 1 in 3 of our students get an offer from one of their extreme reach schools!
To get answers to your questions or to find out if our services are the right fit for your college dreams, schedule your own free feedback session today.
Talking to a Crimson strategist is an effective way to see what it’s like to have an expert from a world-leading admissions team on your side, and it’s the fastest way for us to learn more about your college goals and interests.