One of America’s most prestigious universities has made the historic decision to offer the majority of its new undergraduate students a tuition-free education.

The Massachusetts Institute of Technology announced Wednesday that students with household incomes below $200,000 can expect to attend the Cambridge institution tuition-free starting next fall.

The majority of U.S. households meet this income threshold, according to the university, which says the new policy will cover 80% of its incoming courses.

Additionally, students with family incomes below $100,000 will have their entire MIT experience paid for, including tuition, room and board, fees, and an allowance for books and personal expenses.

“MIT’s distinctive education model – intense, demanding, and rooted in science and engineering – has deep practical value for our students and for society,” MIT President Sally Kornbluth said in a statement press.

“The cost of college is a real concern for families at all levels,” Kornbluth added, “and we are committed to making this transformative educational experience accessible to the most talented students, regardless of their financial situation. To every student who dreams of coming to MIT: Don’t let cost concerns get in the way.”

The best engineering university in the United States, which was also ranked the third most prestigious university in the country by Forbes, has a high annual price tag.

Tuition at MIT was $57,986 for the 2022-2023 school year, which is higher than the $39,400 average for private four-year institutions nationwide, according to the Education Data Initiative.

Stu Schmill, MIT’s dean of admissions and student financial services, said the financial aid initiative allows the most eligible U.S. students to acquire a top-notch education, regardless of their family’s income.

“We believe MIT should be the premier destination for the nation’s most talented students interested in an education focused on science and technology, and accessible to top students regardless of their financial situation,” Schmill said in the press release.

Before the historic financial aid announcement, MIT was already one of nine U.S. universities that did not consider applicants’ ability to pay as part of their admissions process.

Unlike most American universities, MIT does not expect aid students to take out loans, and it does not provide “admissions advantages” to children of alumni or of donors, according to the press release.

“With the need-based financial aid we provide today, our education is far more affordable today than at any time in the past,” Schmill, a 1986 MIT graduate, said in the release , while acknowledging that, of course, “the ‘sticker price’ of MIT is higher today than it was when I was a student.”

The tuition-free financial aid initiative is made possible by “generous donations made by alumni and friends” of the university, according to MIT.