(CBS DETROIT) — The University of Michigan Board of Regents approved a new budget for the upcoming academic year.

According to the university, tuition will be rising by 3.4% but will be offset by a 5% increase in financial aid.

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Officials say 1 in 4 in-state undergraduates will not pay tuition because the increase in financial aid will cover tuition for most students.

Most graduate programs will see a 3.9% increase in tuition and fees.

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In addition, the Ann Arbor campus will expand its $15 per hour minimum wage to temporary and student employees.

Officials say the general fund budget is part of a universitywide budget packet including spending plans for Michigan Medicine, UM-Dearborn, UM-Flint, athletics, Michigan Housing and supplemental student fees.

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