It can be free if you download it online and not buy it in store.
The Free to Play option will let you experience the game for free all the way to the max level (50), however, you will be extremly limited in game features. Below are just a few of the restrictions.
Those are just some of the basics. You can upgrade to "Preferred Status" buy buying something from the Swtor store on the site, like Cartel Coins. Cartel Coins allow you to unlock some features of the game, like crew skills, cargo access, expanded inventory slots, etc. Buying anything will get you preferred status.
Preferred status players are higher in the "food chain" than Free to Players. They have more quickslot bars (4 total, in a coming patch), higher credit cap (350,000), automatic access to their cargo hold (free to players cannot access their cargo holds), and in a coming patch, will be able to access 6 character slots instead of just two
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SWTOR is free with some member benefits for those who do decide to purchase the membership. Them becoming free has been in the past year or so.