California lawmakers proposed a plan on Monday that would help about 400,000 students by helping existing aid programs and eliminating the necessity of student loans, according to The Los Angeles Times.

The plan would help students from the California State University (CSU) and the University of California systems. The plan will also increase grants for community college students and help full-time first year students have a tuition free year.

This new plan would cost approximately $1.6 billion per year. Most of this money would be provided by the state’s general fund. According to The Los Angeles Times, Assemblyman Kevin McCarty said they expect tax revenue to come in higher, which will help legislators have a higher amount of money to spend than what the governor predicted.

This new scholarship is expected to cover the yearly cost of college, which for CSUs would be about $21,000 and for UC’s $33,000.

Students will still have access to financial aid, Pell Grants, Cal Grant and other existing programs.