Kingsbury, 33, will succeed Tommy Tuberville, who resigned last week to coach at the University of Cincinnati.
Kingsbury, who played behind center for the Red Raiders from 1998-2002, comes from Texas A&M, where he was offensive coordinator and quarterbacks coach for Heisman Trophy winner Johnny Manziel.
He takes over a program that went 7-5 this season and will play Minnesota in the Dec. 28 Meineke Car Care Bowl of Texas.
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