The University of Michigan and Michigan State University are raising tuition, partly in response to uncertain funding from the state and federal governments.
Several factors have increased costs that need to be covered, according to budget proposals from both schools. That includes slashed federal funding and a decline in international student enrollment thanks to federal policy.
“No increase [to tuition] is ever taken lightly,” MSU Trustee Mike Balow said at the Friday board meeting where trustees approved the school's tuition hike. “But in light of everything going on, it seems that we struck the balance here.”
Inflation, tariffs and increasing costs of health insurance for employees have also raised costs, Trustee Sandy Pierce said at the meeting.
Here’s the approved tuition increases for each university:
University of Michigan
- 3.4% for in-state undergraduate students (about $610 per year)
- 4.9% for out-of-state undergraduate students (about $3,016 per year)
- 4.9% for most graduate students (costs vary by program)
- No increase for students who receive need-based aid
Michigan State University
- 4.5% across-the-board increase (about $798 per year)
- This number is not set in stone, Pierce said. It could go down if the state Legislature votes to lower the cap on allowed tuition hikes.
State funding is also a concern this year, university officials said. The state House passed a higher education budget proposal yesterday that would cut $224 million in funding to U-M and $56.6 million to MSU. That money would then go to the state’s 13 other public universities.
Neither school was able to include those numbers in its budget. U-M’s assumed the state would appropriate the same amount as it did for 2025, and MSU’s was based on the state Senate budget that isn’t as drastic in its changes.
State money is about 12% of the general fund budget for U-M, the school said in a press release. State funding, student tuition and fees provide “nearly half” of MSU’s operational budget, according to that school’s budget proposal.
MSU needs state funding to continue its mission, the school said in a statement.
“MSU educates more Michigan residents than any university in the state and prepares them to lead in every sector of our economy,” a spokesperson said. “A budget reduction of the scale proposed by the House would hinder our ability to deliver the high-quality, affordable education that Michigan students expect and deserve.”
Chris Kolb, vice president of government relations at U-M, said something similar.
“The proposed House budget is deeply disappointing and would dramatically reduce support for the University of Michigan — an institution that delivers exceptional value to our state,” he said in a statement.
Representative Ann Bollin (R-Brighton), chair of the House Appropriations Committee, told reporters the flagship schools were investing too much in diversity, equity, and inclusion programs, and not enough in students from Michigan. A provision in the House budget plan would claw back state money that universities spend on DEI programs.
MSU data show 72% of students enrolled at MSU in Spring 2025 were from Michigan. And 52% of U-M Ann Arbor’s undergraduates in fall 2024 were from Michigan.
The House's higher education budget legislation now goes to the state Senate for debate.
The University of Michigan holds Michigan Public’s broadcast license.
