The University of Memphis will no longer charge tuition to the children and spouses of fallen service members.
The school becomes the first to offer the national Folds of Honor scholarship as a payment-in-full scholarship, The Memphis Commercial Appeal reported on Monday, Memorial Day.
The university already accepts the scholarship, which provides a $5,000 per year payment to undergraduate students under the age of 24 who had a parent severely injured or killed while on active duty.
Spouses of any age can also receive it if they have not remarried.
Fold of Honor recipients, both those currently enrolled and future students, will no longer need to pay for the rest of their education at the Tennessee school.
The average cost of tuition at Memphis is reportedly about $9,700 a year, plus room and board, fees and textbooks.
Any outstanding fees may also be covered by additional scholarships, said university President David Rudd.
"Our commitment is to cover any gap that exists as a result and to relieve them of that burden," Rudd said.
The deal will be formally signed by Rudd in the coming weeks.
"This sacrifice is remarkable and we need to recognize that," he said.