ANN ARBOR, Mich. (AP) – Regents at the University of Michigan have approved a 2.7 percent tuition increase for in-state undergraduate students for the upcoming academic year.

Tuition for nonresident students will go up by 3.7 percent.

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The hike is part of the Ann Arbor school’s nearly $1.80 billion operating budget approved Thursday.

Provost Martha Pollack said the school has “had relatively modest tuition increases for in-state students over the past five years.”

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Michigan State University trustees voted Wednesday to raise tuition by 2.7 percent for in-state undergraduates. Increases at both schools are under the state Legislature’s 3.2 percent tuition cap, meaning they will get incentive funding.

Eastern Michigan University forfeited the incentive funding when it voted to exceed the cap and the school approved a 7.8 percent increase in tuition and fees.

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