AUSTIN, Texas (CBSDFW.COM/AP) — The University of Texas at Austin 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.

Under current enrollment, more than 8,500 students would qualify for free tuition.

University of Texas campus (courtesy: Mark Schnyder)

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.

UT Austin President Greg Fenves calls the decision “one of the largest commitments ever made to improving college affordability among the nation’s leading public universities.

He also called it an important day for UT Austin and said he couldn’t be prouder.

University of Texas tower lit burnt orange (courtesy: Mark Schnyder)

(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)