(Article from the Associated Press that appeared on CNN.com)

Hoping to encourage students scared by rising higher education costs, Stanford University is eliminating tuition for undergraduates from some of the lowest-income families.

Under a new program announced Wednesday, students from families with annual incomes of less than $45,000 will not pay tuition. Those with incomes up to $60,000 will pay about $3,800, the school estimates.

Stanford's undergraduate tuition for the next school year will be nearly $33,000. Add in other expenses, such as books and housing, and the cost averages about $47,000.

"Students from low-income backgrounds are underrepresented at our nation's most selective institutions," said Richard Shaw, Stanford's dean of undergraduate admission and financial aid.

"Many families ... may be discouraged by the stated tuition, so we want to be more forceful with this new program in encouraging talented low-income students to consider Stanford," he said.

College costs have been rising fast across the U.S. According to the latest survey from the College Board, a nonprofit association based in Washington, D.C., tuition and fees at four-year private institutions rose nearly 6 percent to $21,235 for the 2005-06 academic year, from $20,045 in 2004-05.

Costs at four-year public institutions went up more than 7 percent to $5,491 from $5,126.

Stanford already provides strong financial aid. This year, students from families earning less than $45,000 paid an average $2,650, according to the university. The new program, starting for an estimated 1,100 current and new students this fall, is expected to cost the university $3 million in the first year.

Harvard and Princeton universities are among other elite American universities with similar programs.