ANN ARBOR, Mich. The University of Michigans 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. 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. Students also will see a 1.9 percent increase in the University Health Service Fee to $202.39 per student per semester.