UT Austin Launches Housing Scholarship Program to Support Low- and Middle-Income Students

The University of Texas at Austin has initiated a groundbreaking pilot housing scholarship program aimed at easing the financial burden on students from low- and middle-income families. This initiative underscores the university's commitment to addressing affordability and ensuring student success.

Addressing Affordability: The Pilot Housing Scholarship

In a move to alleviate financial pressures, The University of Texas at Austin has launched a pilot housing scholarship program specifically designed to support students from low- and middle-income backgrounds. This program prioritizes first-year students and offers scholarships of up to $1,800 per academic year to offset housing costs. Eligibility is limited to students who qualify for free or reduced tuition through the Texas Advance Commitment (TAC) and reside in University residence halls. Now in its second year, UT’s housing affordability scholarship program offsets housing costs up to $2,300 per academic year for students who are eligible through TAC and who live in University residence halls. Students who receive full tuition coverage through Texas Advance Commitment for the 2025-26 academic year will receive $2,500 to help offset the costs of housing. This will appear as a $1,250 per term scholarship on your financial aid award in July. Students who receive partial tuition support through Texas Advance Commitment for the 2025-26 academic year will receive $1,500 to help offset the cost of housing. This will appear as a $750 per term scholarship on your financial aid award in July.

The Texas Advance Commitment (TAC)

First implemented in 2018, the Texas Advance Commitment is UT Austin’s commitment to making a UT education even more affordable, transparent, and understandable for Texas students and families from middle- and low-income backgrounds with financial need. Texas Advance Commitment was expanded in Fall 2020 to increase income levels served through a new endowment created by The University of Texas System Board of Regents. In Fall 2024, The University of Texas System Board of Regents announced further expansion to the endowment beginning Fall 2025. Under this expansion, Texas residents entering UT Austin as freshmen or transfer students, as well as continuing students with family-adjusted gross incomes (AGIs) of up to $100,000, will have tuition covered with gift monies up to tuition. Students who enter as freshmen can receive funding for up to four years or the length of their program. For students with a family AGI of up to $100,000, your tuition will be covered first by your Federal and State grants (Pell, FSEOG and Texas Grant). For eligible undergraduate or first time in college transfer students, grants and scholarships are used first to cover the costs of tuition. The Texas Advance Commitment applies to tuition; however, there are additional grant, scholarship, work-study and loan funds available to help with the other costs of education, like books and room and board. There is no separate application. The Texas Advance Commitment is designed for Texas resident students who meet all the eligibility requirements. No, you will not see the words “Texas Advance Commitment” in the financial tab of your My Financial Aid portal. All sources of tuition funding, including grant and scholarship assistance, meet the commitment. For example, if an eligible student receives a federal Pell grant and/or a Texas Grant, these resources are applied first. No. Texas Advance Commitment is not currently awarded during the summer term. For eligible students with AGIs of up to $100,000, your financial assistance will be adjusted based on your enrollment (full-time or part-time) as of the 12th class day. The University of Texas at Austin launched a new, pilot scholarship program for students who receive tuition support through Texas Advance Commitment and live in on-campus housing at 2400 Nueces Apartments, Dobie Twenty21 or one of our 15 residence halls. No, you do not need to apply. Students who receive full tuition coverage through Texas Advance Commitment for the 2025-26 academic year will receive $2,500 to help offset the costs of housing. This will appear as a $1,250 per term scholarship on your financial aid award in July. Students who receive partial tuition support through Texas Advance Commitment for the 2025-26 academic year will receive $1,500 to help offset the cost of housing. This will appear as a $750 per term scholarship on your financial aid award in July. Students can apply in the housing portal for on-campus housing in our residence halls, Dobie Twenty21 and 2400 Nueces. University Housing and Dining will begin offering housing contracts in March and prioritizes first-time freshmen in contract offers. The contracting process continues until all spaces are contracted.

Addressing Rising Housing Costs

Rising housing costs in Austin have presented a significant challenge for low-income students, often forcing them to seek more affordable housing options further from campus. This prompted UT-Austin to purchase a private building on campus and convert it into a 778-bed residence hall.

The Significance of On-Campus Housing

UT officials emphasize the importance of on-campus housing, particularly for low-income and first-generation students. Data indicates that students residing on university grounds have better access to services, leading to improved graduation rates.

Scholarship Details and Eligibility

The scholarship is available to offset housing costs for an estimated 3,500 eligible students. Scholarships will be awarded in order of housing application date and prioritize first-year students. UT will notify students on April 19. Students whose family income is $65,000 a year or less and who receive full tuition benefits through Texas Advance Commitment are eligible for a housing award of $1,800 for the 2023-2024 academic year. Students whose families make between $65,001 and $125,000 annually and who receive tuition support through Texas Advance Commitment are eligible for an award of $900.

Financial Investment and Housing Rates

UT plans to set aside $5.8 million for the 2023-2024 academic year from University housing revenue. The university said it typically sets housing rates at or below the local market average and expects them to increase next year, but less so than in recent years. Combined with the new program, UT-Austin said it expects eligible students will pay less for on-campus housing this upcoming school year.

UT System Commitment to Affordability

This week, the UT System committed to provide free tuition to undergraduates whose families have an adjusted gross income (AGI) of $100,000 or less, a significant increase from the current threshold at UT Austin of $65,000. This new threshold will apply to students at all UT System institutions. The expansion advances the UT System’s Promise Plus initiative, which dedicates significant resources to increasing affordability statewide.

Expanding Financial Aid and Scholarship Funding

Since 2019, the University has increased student financial aid and scholarship funding by expanding the income eligibility of TAC. Currently, 14,500 UT Austin undergraduates - one-third of UT’s undergraduate student population - benefit from TAC. University officials estimate an additional 3,000 students will benefit from the program expansion.

A Comprehensive Approach to Affordability

The pilot housing scholarship is UT’s latest initiative to address student success by offsetting the total cost of attendance on all fronts for students who have the greatest financial need: housing, tuition, books and ancillary needs.

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University Leadership's Perspective

“We have already made progress in reducing and, in some cases, eliminating the cost of tuition for our students who can least afford it, through programs such as the Texas Advance Commitment,” said Jay Hartzell, UT Austin president. “Now we are actively working to identify new and more expansive solutions to mitigate the rising cost of Austin’s housing market, which has become a more acute financial barrier. Data show that students who live closer to campus with greater access to food services, academic support and social activities have higher retention rates and success. This is especially true for first-generation and lower-income students, who comprise about one-quarter of UT’s 40,000-plus undergraduate student body. “This pilot scholarship program is the next step among many that we will take as we work to expand initiatives and introduce new opportunities to benefit our students,” Hartzell said. “We do not want affordability to be a barrier to a first-class college education, and we are extremely thankful to the Board of Regents for making this incredible investment and inspiring our collective vision to make our University affordable and accessible for all Texans who earn a spot on the Forty Acres,” said UT President Jay Hartzell. “We are thrilled to welcome even more students and families to Longhorn Nation who may not have otherwise considered UT Austin. “To be in a position to make sure our students can attend a UT institution without accruing more debt is very important to all of us, and as long as we are here, we will continue our work to provide an affordable, accessible education to all who choose to attend a UT institution,” Eltife said. “What is particularly gratifying to me, and to UT presidents, is that the regents are not only addressing immediate needs of our current students, but they are taking the long view, ensuring that future generations will continue to benefit from this remarkable program,” said UT System Chancellor James B. Milliken.

Expanding Housing Options

UT recently accelerated its two-prong housing affordability strategy: lowering cost and increasing supply. In 2021, the University purchased and updated Dobie Tower, adding 778 beds for undergraduates on campus. Another residence hall with 784 beds for graduate students is under construction and expected online for fall 2024. In addition, UT continues to explore new housing on underdeveloped University-owned land, adding capacity to existing residence halls and opportunities to acquire existing housing near campus.

Scholarships Beyond Housing

Scholarships are a form of financial aid that does not need to be repaid. Some scholarships are awarded based on financial need, while others are considered merit-based scholarships, which means they are awarded based on academic achievement or participation in extracurricular activities. In addition to those awarded by the Office of Scholarships and Financial Aid, most colleges and departments administer their own scholarships. Scholarships awarded by your college or academic department are included in your Cost of Attendance (COA). UT students can also apply for and receive scholarships from organizations outside of the University. Scholarships awarded by an organization or entity outside of UT Austin also count toward your Cost of Attendance (COA).

Applying for Scholarships

Apply for admission to UT using the CommonApp application by December 1. Incoming students who do not submit a FAFSA/TASFA will still be considered for scholarships that do not require financial need. The UT Scholarship Application for Continuing & Transfer Students is available in November of each year and is used to award undergraduate students for the following academic year. This online application is strictly for continuing students who are eligible to enroll, transfer students who have been officially admitted or have completed an application for transfer admission AND returning UT students who are applying for readmission to UT. Students participating in the Coordinated Admissions Program (CAP), seeking admission to UT and waiting to complete the requirements by June 1 to enroll in the fall, can also use this online application. Log in to Longhorn Awards & Student Scholarships Opportunities (LASSO) to search for the application and apply.

Managing External Scholarships

Your donor may also provide a paper check made payable to The University of Texas at Austin or co-payable to you and UT Austin; it must include your full name and EID. Some private donors may want to verify your enrollment at UT before releasing any funds. For unofficial proof of enrollment, you may print your fee bill straight from My Tuition Bill. The University of Texas at Austin must include all scholarships in your financial aid package, and other aid may be adjusted to account for these external resources. Federal and state requirements do not allow a student’s financial aid to exceed the Cost of Attendance (COA), or in some cases, financial need. Students who receive scholarships that bring their aid package (including all institutional, state, federal, and private sources) above their COA or financial need may have certain types of financial aid (including grants and scholarships) reduced or canceled. In most cases, loans will be reduced before any other kind of aid. Bevo then receives a $4,000 scholarship from the Texas Foundation with half releasing in the fall and the other half in spring.

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