Every high school graduate in Tennessee can start celebrating as Gov. Bill Haslam signed a law on Tuesday promising free community college tuition, CBS News reported.

In Magnet High School in Nashville, more than half of the seniors have applied to go to college, principal Michael Steele said.

"Most of our students live below the poverty line," he said. "Many of them don't have parents directly involved in their lives, many of them live with guardians, many of them live in state foster homes and some are homeless."

Around $34 million would be used from lottery funds to help the Tennessee Promise in covering tuition for a two-year degree at a community college.

"Our family -- instead of two steps back, we're like, getting two steps up," said Nazje Mansfield, who plans to enroll and become a teacher. Her mother works the night shift at Walmart.

"I thought I was just going to have to take out a million loans and be paying them till I'm dead," Nazje said.

Although similar programs have been provided by thirty cities, Tennessee offers a unique package with fewer restrictions.

With a third of Tennesseans having a college degree, Haslam wants to raise it up to 55 percent, according to CBS News.

Haslam was, however, questioned whether the initiative might be termed as an entitlement program by some people.

"We have a lot of entitlement programs in this country, and we've seen how much they cost us on the back end when people don't have the education they need. I say let's make this investment on the front end. I think it'll be better for the individual and better for our state in the long term," he said.

Workers with a two-year degree earn about $57,000, while those with only a high school diploma make $35,000.

"I think it's going to have a huge impact on high school kids putting forth a greater effort, because they know the next two years, it's going to be taken care of," he said.

The Tennessee Promise goes into effect next year, CBS News reported.