ANN ARBOR – The University of Michigan Regents approved a 3.4% tuition rate hike on Thursday for the 2022-2023 academic year.
In-state tuition will cost $16,736, up from $16,178 this past year and tuition and fees for nonresident students will increase by 3.9% -- or $2,102 -- for a total annual rate of $55,334.
Additionally, most graduate program tuition and fees will increase by 3.9%.
The budget was approved 7-1 with Regent Denise Ilitch voting no. All budgets will go into effect on July 1.
Regent Ilitch criticized the move and said it “limited opportunities” for working- and middle-class students to receive a Michigan education. She said U-M has raised the tuition for the past 38 years.
“This business model is not sustainable,” Ilitch said in a statement. “So I am going to encourage us to consider change. We are an extremely financially strong institution, so we’re blessed with a lot of financial flexibility. That flexibility gives us the awesome ability to look at our financial situation through multiple lenses.”
Room and board rates were also increased by 4.6% for the upcoming fiscal year. University officials said the increase will support maintenance of residence halls, including improving security, student room amenities, Wi-Fi and help address rising food costs.
For the fall and winter terms, the cost for a student in a double room with a basic meal plan will increase by $72 per month for a total of $13,170.
Students will also pay $209.80 per semester for the University Health Service -- up 2.2% from last year -- and will pay an extra $2 toward the Central Student Government fee for a total of $11.19 per semester.
According to U-M officials, the hike in the in-state undergraduate rate of tuition and fees will come with a 5% increase in financial aid -- that’s roughly $12.8 million more than the 2021-2022 academic year.
“It’s important to notice that for the last decade, our budget includes enough additional financial aid dollars each year so that most undergraduates from the state of Michigan will see no increase in out-of-pocket tuition costs,” U-M Regent Michael J. Behm said in a statement. “This includes more than 90% of students from families who earn less than $125,000 in annual income. I think that’s quite an accomplishment.”
Minimum wage was also approved to be increased to $15 per hour for all employees on the Ann Arbor campus.
“The $15 minimum wage is a really important milestone for our university,” said Regent Acker, the board chair. “I look forward to continuing to pay a fair and living wage to our employees.”