The University of Michigan plans to raise in-state undergraduate tuition and fees 2.8 percent next year.

The Ann Arbor school's decision brings the tab to nearly $13,000 for most freshmen and sophomores. The increase adds $360 per year for most students.

Still, according to reports, it's the university's second-lowest tuition increase in a decade.

Tuition for non-residents also will increase, rising by 3.5 percent and reaching more than $39,000. It adds $1,340 per year for most out-of-state students.

Tuition for graduate students is set to rise an average of 3 percent.

The increases passed in a 5-3 vote by the Board of Regents on Thursday.

University officials calculate that over the course of 11 years, state appropriations to the school have dropped by $178 million. That's after adjusting for inflation.