UT’s new tuition policy

Nice.

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.

School officials estimate about a quarter of its undergraduates from Texas — 8,600 students — would have their tuition fully paid under the new plan, and an additional 5,700 would receive financial aid from it. The program will not pay for students’ living expenses, which were estimated to be around $17,000 for the 2019-20 academic year. Tuition and fees averaged $10,314 for Texas residents.

This is good, and a decent number of students will benefit from this policy. Remember, though, the main reason why tuition is as high as it is now, not just at UT but at all Texas public universities, is because the Republican-controlled Legislature deregulated tuition in 2003, as a way to help balance the budget by spending less on higher ed. You can see what happened next. It’s great that UT’s endowment allows them to take this step, but UT-Austin is just one school. If we really want to fix this, it’s going to take a lot more than this.

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2 Responses to UT’s new tuition policy

  1. Bill Daniels says:

    Law of unintended consequences. Every kid in the state, including illegal alien kids, is going to apply to UT. They will quite literally have a million applications for what, 15,000 spots? They’re going to have to hire a bunch of admission folks to handle the deluge.

    Seems like, instead of giving free tuition to a lucky few, the state should have spread the wealth and lowered tuition a little bit for everyone at a state school.

  2. Corey says:

    Bill:

    They cant do that. They are spending money from UT’s endowment which can only legally be used on itself.

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