ANN ARBOR, Mich. – The University of Michigan’s Board of Regents approved a budget on Monday that includes a 1.9 percent tuition increase and $12.8 million in additional need-based financial aid for undergraduates on campus.
The Ann Arbor general fund budget, including its 5.6 percent increase in undergraduate financial aid, will cover the entire cost of the tuition increase for in-state students receiving need-based aid, according to president Mark Schlissel.
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Schlissel said that the financial aid office is ready to adjust or grant new aid to families whose circumstances have changed because of the coronavirus (COVID-19) pandemic.
"We are committed to do our very best to make sure that the COVID-19 pandemic does not result in a lost generation of students who were unable to continue or complete their Michigan educations because of the circumstances we all find ourselves in," Schlissel said.
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The vote came during a special session held four days after the budget proposal failed when regents split 4-4. The budget is part of an approved university-wide consolidated budget package that also included spending plans for Michigan Medicine, UM-Dearborn, UM-Flint, Athletics, Michigan Housing and a number of supplemental student fees.
READ: Tuition increase fails in tie vote by University of Michigan board
During Monday’s meeting, Schlissel also announced he would double an amount he promised during Thursday’s regents meeting for a fund available to support student recruitment, retention and graduation at UM-Dearborn and UM-Flint, from $10 million to $20 million.
"I appreciate the many voices who have advocated for greater investments to promote increased enrollment and greater student success at our regional campuses," Schlissel said. "I'll be working closely with the chancellors to determine how best to target this funding since they know their campuses the best."
The $2.3 billion general fund budget that starts July 1 is based on the new tuition rate, $102 million in cost containment and an estimated state appropriation of $325.5 million -- the same amount as this year.
Tuition for the most common lower-division rate will increase by $290, for an annual rate of $15,520 for in-state students and by $966, for an annual rate of $51,838 for nonresident students.
A 5.6% increase in undergraduate financial aid will cover the entire cost of the tuition increase for in-state students receiving need-based aid. Most graduate programs will also see a 1.9% tuition increase.
Last week, Schlissel announced that the university would launch the fall semester on Aug. 31 with in-person and remote classes. On-campus classes will end at Thanksgiving in the fall to minimize student travel home and back to campus. Winter semester will start later in January.
Regents also approved a temporary $50-per-term COVID-19 fee. Officials said the fee will help cover the costs of testing and other health and safety-related services. Students also will see a 1.9 percent increase in the University Health Service Fee to $202.39 per student per semester.
Regents also approved a 1.9% increase for residence hall room and board rates for FY2021.