The University of Chicago is the latest elite institution to expand its offer of free tuition to more students.

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The University of Chicago announced Wednesday that it will guarantee free tuition starting in the fall of 2027 for undergraduate students from families with annual income less than $250,000 (assuming typical assets). As part of its expanded aid, the university will provide free tuition plus it will cover the costs of housing, meals and other fees for students from families with income less than $125,000.

The new financial aid commitment represents a significant expansion of the university’s previous guarantee that it would provide free tuition for students from families with annual earnings less than $125,000 and offer free tuition plus mandatory fees, room, and board for those from families earning less than $60,000 per year.

“The University of Chicago is proud to sponsor a learning environment characterized by intellectual curiosity, ambition, and rigor, to shape the next generation of great thinkers whose ideas will benefit the American people and the broader world,” said University of Chicago President Paul Alivisatos, in a press release. “By deepening our commitment to affordability, we are helping to ensure that the brightest minds can join us.”

According to the university, it provides more than $225 million in annual financial aid to undergraduate students. That figure has doubled since 2011 and will further increase even more to pay for the new aid offer. The average financial aid package for undergraduate students at UChicago is more than $75,000. With the new aid threshold, 90% of U.S. households would qualify for free tuition at the university.

Along with the expansion of financial aid, University Provost Katherine Baicker announced last week that the institution is starting on a “multiyear plan” to increase undergraduate enrollment to around 9,000 students, up from its current level of about 7,500. That news was first reported by the student newspaper The Chicago Maroon.

That plan follows recent decisions by Columbia University and Yale University to phase in increases of their undergraduate enrollment as elite universities try to generate more net tuition revenue at a time when many are facing mounting financial challenges.

The University of Chicago has taken several major cost-reduction steps to reduce its budget deficit from $288 million in Fiscal Year 2024 to $160 million in Fiscal Year 2025. University officials recently said the institution was on track to further shave down the budget gap to about $140 million by the end of this fiscal year.

In an increasingly competitive college admissions environment, the tuition arms race shows no signs of slowing down. Several premier universities have rolled out new free tuition programs in the past few months, and Chicago’s new package is one of the most generous to date.

In January, Yale University announced it was expanding its financial aid program and would, beginning next fall, offer free tuition to entering undergraduates from families with annual incomes below $200,000 and cover all the costs of attendance for those from families with incomes below $100,000.

Two months later, the University of Notre Dame enhanced its undergraduate financial aid program so that, beginning in the 2026-27 academic year, students from families with annual income below $150,000 will have all their tuition costs covered. Families with income below $200,000 will receive need-based aid that will pay for half the cost of tuition.

Late last year, Johns Hopkins University, the University of Utah, Smith College, Bryn Mawr College and the Stevens Institute of Technology each launched or expanded free tuition programs. And earlier in the fall, Wake Forest University, Emory University and The Ohio State University announced newly revised free tuition programs for eligible undergraduates.

Beyond meeting institutional enrollment goals, free tuition programs attempt to address two interrelated problems plaguing the nation’s colleges. They are a strategy to mitigate concerns that college has become too expensive, and they seek to boost the public’s sagging confidence in the value and purpose of higher education. Once confined mostly to elite private universities with high sticker prices and large endowments, free tuition programs are becoming a standard pricing practice at a growing range of schools.