Yale University announced Tuesday it will eliminate tuition costs for undergraduate students from U.S. families earning less than $200,000 annually, joining a growing number of elite institutions working to improve college affordability. The policy takes effect for students entering this fall.

The New Haven, Connecticut-based Ivy League school said it will completely cover all expenses—including tuition, room, and board—for families earning up to $100,000. Those with incomes between $100,000 and $200,000 will receive financial aid packages that meet or exceed tuition costs.

Yale previously waived all expected costs for students from families earning less than $75,000 a year. By raising the limit to $100,000, the university said nearly half of American households with children ages six to 17 will qualify.

"This strategic investment is central to our mission to educate exceptional students from all backgrounds," Provost Scott Strobel said. "The benefits are evident as these talented students enrich the Yale campus and go on to serve their communities after graduation."

According to Kari DiFonzo, director of undergraduate financial aid, approximately 1,000 of Yale's 6,800 undergraduate students currently attend tuition-free, while just over half receive need-based financial aid. Without assistance, annual costs at Yale can reach $90,000, including tuition, housing, and meals.

Yale follows a wave of prestigious universities that have made similar moves in recent years. Last fall, Harvard University rolled out a nearly identical policy while the University of Pennsylvania moved to make tuition free for families making less than $200,000 annually. The Massachusetts Institute of Technology and Princeton University have also implemented comparable initiatives.