$100M Dell Gift To UT-Austin Aims To Increase Graduation Rates

AUSTIN, TX — University of Texas at Austin officials on Friday announced the donation of a $100 million gift from the Michael & Susan Dell Foundation aimed at increasing graduation rates.

The specific aim of the donation — to be distributed incrementally over the course of ten years — focuses on graduation rates for the 8,000-plus Pell Grant-eligible students attending UT-Austin. Notwithstanding the sheer scale of the substantive gift, university officials noted the other elements of the gift also are aimed at bolstering graduation rates, including:

• Access toward direct-to-student support services (i.e., financial literacy training, guided connection to academic resources) and a highly personalized approach to mentoring and social-emotional support, both of which are factors in improving graduation rates of students from low-income backgrounds.
• A focus on the Dell Scholars program model, which for more than 15 years has achieved graduation rates for low-income students at 4 times the national average, as a result of its personalized student support services and flexible financial aid approach. "At UT, the partnership will bring that model to scale," university officials said in a press advisory.
• Sustainability, with a vision to 2030 — when the formal partnership concludes — by which time the enhanced student success programming will be fully integrated into UT’s Student Success Initiatives.

The historic partnership seeks to close the gap in college graduation rates across income levels by expanding individualized support services for not only Pell-eligible students but with additional financial support to students with the greatest financial need, officials explained.

Federal Pell Grants are awarded to students with a high level of financial need, with greater than two-thirds coming from families with incomes of $30,000 or less each year.

“When Michael and I opened the doors of our family foundation in 1999, one of the first big initiatives we launched was the Dell Scholars program,” Susan Dell, co-founder and chairman of the board of the Michael & Susan Dell Foundation, said in a prepared statement. “From the very beginning, it has been incredibly important to us that students from all backgrounds have the opportunity to graduate from college – and that mission continues to this day.”

Infographic courtesy of University of Texas at Austin, used with permission.

Beginning this fall, incoming Pell-eligible freshmen from families with the greatest need will become part of the Dell Scholars program, a proven model serving students from throughout the country. Each Dell Scholar will receive a financial award of $20,000 over his or her time in college that can be applied to the cost of attendance, including room and board, transportation, supplies, and other expenses. For Texas residents, that funding will come on top of the university’s Texas Advance Commitment, which guarantees aid to cover the full cost of tuition and fees for Texas families earning $65,000 or less each year, officials added.

While financial support is a critical component ensuring graduation, officials noted, closing the graduation rate gap requires even more. Along with this new class of Dell Scholars, all Pell-eligible undergraduate students at UT Austin will receive ongoing and individualized support from UT for Me – Powered by Dell Scholars, which will be designed to level the playing field for students from low-income backgrounds. This support includes:

• Personalized, multi-faceted support;
• Financial aid coaching and financial literacy training;
• Tutoring and textbook support;
• A laptop computer;
• Peer advising support;
• Internship and career planning;
• Connections to university resources and programming; and
• On-track graduation planning.

With the enhanced financial support and services, the Dell Foundation and UT Austin embark on a shared commitment to raise six-year graduation rates for Pell-eligible students from 73 percent to 90 percent, officials said. This increase would surpass the university’s current overall six-year graduation rate of 86 percent, university officials added. Nationally, school officials added, only 1 in 5 students from a low-income background graduates from college in six years.

“A college education has the power to change the life of a student and the future of their family and community,” UT Austin President Gregory L. Fenves said after a formal presentation on Friday announcing the partnership. “As a result of our groundbreaking partnership with the Michael & Susan Dell Foundation, The University of Texas at Austin is poised to increase opportunities for thousands of talented students whose potential to achieve will be met with unprecedented commitment, resources and support.”

The experience of both organizations has demonstrated that financial assistance alone is not enough to help students graduate, and that mentoring, support services, and building communities of peers are equally important, officials said.

“It’s easy to assume that it’s money that keeps students from graduating from college,” added Janet Mountain, executive director of the Michael & Susan Dell Foundation. “We know that it’s often other personal challenges – challenges that are mostly solvable with the right support at the right time – that derail students from achieving a degree.”

The program will begin serving freshmen this fall and add a new class of first-time college students each year. The university has committed to raising funds to maintain these services after 10 years, with programming fully integrated into UT’s Student Success Initiatives beyond 2030.

About Dell Scholars

Dell Scholars is a scholarship and college-completion program that nurtures and empowers students on the path to a college degree. Since starting the program in 2004, the Michael & Susan Dell Foundation has supported 5,000 scholars, including more than 2,400 college graduates. Nationally, only 20 percent of students like our Dell Scholars graduate from college within six years, but our scholars are changing that reality by graduating with a bachelor’s degree at 80 percent within six years.

About UT Austin

Ranked among the best research universities in the country, UT Austin is home to more than 51,000 students and 3,000 teaching faculty members. The university, already considered one of America’s best educational values, became even more affordable with the expansion of its Texas Advance Commitment in 2019. UT has also become a national leader in student success through campus-wide efforts that led to record highs in the university’s graduation rates in 2018 and 2019. Nearly 70 percent of UT students now graduate in four years, up from about 50 percent less than a decade ago.