Stanford waives tuition for students whose parents make less than $125K

Free college!

Well, free if you're an accepted student at Stanford University (a mere 5% of this year's applicants), and your parents make less than $125,000 a year.

The top-tier school in Palo Alto, Calif. — which costs about $65,000 a year to attend — has announced a broadening of its financial aid package.

For the first time, the school will offer free tuition to accepted students who come from households with an annual income below $125,000. Previously, the aid package capped at $100,000 per household.

Additionally, the aid package for room and board has expanded. Households with incomes below $65,000 will not be expected to pay, up from the $60,000 cap that was put in place starting with the 2008-2009 school year.

Students will be expected to contribute $5,000 a year through part-time work.

"This expansion of the financial aid program is a demonstration of Stanford's commitment to access for outstanding students from all backgrounds — including not only those from the lowest socioeconomic status, but also middle- and upper-middle-class families who need our assistance as well," Karen Cooper, associate dean and director of financial aid for Stanford, said in a statement.

Stanford accepted 2,144 of 42,487 applicants for the 2015-2016 school year, according to the release. Sixteen percent are first-generation students.