The heartbroken family of 21-year-old Demi Nicholson launched the charity as they spoke of their grief at losing the young woman who would 'light up a room'.
Demi, from Winson Green in Birmingham, was in the final year at Liverpool Hope University when she was killed on the northbound of the M6, near Wednesbury, in January as her Vauxhall Corsa collided with a blue BMW.
More than 1,000 people turned out for the funeral of the popular student.
Now her mother Novlet Nicholson and aunts Wendy Nicholson and Valerie George have set up the D.E.M.I Trust, which stands for Dream Enormous Make an Impact, in her name.
The charity will aim to support students from low-income families who wish to go to university with starter packs such as bedding and cookware.
The Liverpool Hope University has since awarded Demi a posthumous first-class degree.
Ms George, said: “She was the most beautiful girl who would light up a room.
"We were all so proud of her. She had a wonderful outgoing personality and had the ability of letting you think you was the only person in the room.
“She was one of the most determined people you could ever wish to meet and was heading for a first-class degree in law. She wanted to become a barrister.
"Demi’s drive and ambition has been an inspiration to all those who knew her.
“While coming from humble beginnings Demi had financial support from her mother when she started university.
"She was fully aware that this was a privilege not available to all and this only ignited her drive to be more successful and give back to the community that she came from.
“Her death has left a massive hole in our lives which will never be filled but we want to ensure something positive comes out of her death and so we have set up a charity in her name to help other students."
They will officially launch the charity at a special ball being held at Aston Villa Football Club on January 6.
Tickets are £45 per person or £400 for a table of 10 and includes an auction.
Call 07377 757021 or email firstname.lastname@example.org.