Michigan State hikes tuition 4.5%, but leaves wiggle room for legislative cap

LANSING — Students will pay a few hundred dollars more to attend Michigan State University for the 2025-26 academic year, but the exact amount is still in flux while legislators iron out the state budget.
Trustees voted June 13 at a meeting in Traverse City to raise tuition 4.5%, but included language that will reduce that amount if the state budget includes a cap that is lower than that, the university said. The state Legislature typically determines a percentage cap that universities can increase tuition for in-state students by, and if an institution goes over that amount it is no longer eligible for millions in state funding.
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Last year, that cap was 4.5%, and both Democratic Gov. Gretchen Whitmer and the Democratic-controlled Michigan Senate proposed that same cap for the coming fiscal year in their budget recommendations. However, the Republican-controlled Michigan House of Representatives previously recommended a 3% cap, but the bill passed with a substitute that brought the cap to 4.5%.
"If you've been reading or listening to the news this week, then you have heard of the threat of additional state appropriation cuts," said Trustee Sandy Pierce, who chairs the board committee of budget and finance. "State appropriations per resident undergraduate student has fallen by 44% since fiscal year 2000 when adjusted for inflation."
The state's final budget may take some time to negotiate between the Republican-led House and the Democratic-led Senate. Lawmakers have a July target date to finalize it but the deadline is the end of the current fiscal year, on Sept. 30.
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As of now, per semester base costs for undergraduate students from Michigan will increase by $399. Freshmen will pay $8,458 per semester, sophomores will pay $8,653 and most juniors and seniors will pay $9,642. Juniors and seniors from Michigan who are in the Eli Broad College of Business or the College of Engineering will pay $9,935 per semester.
Undergraduate students from outside Michigan and international students will also see a per semester base rate tuition increase of $399. Freshmen and sophomores will now pay $22,150 and juniors and seniors will pay $22,818. Juniors and seniors who are in the Eli Broad College of Business or the College of Engineering will pay $23,127 per semester.
Graduate students will see per-credit hour costs increase a similar rate, the university said.
The university said in a statement that the budget allocates an additional $6 million to student financial aid.
The University of Michigan raised its tuition rates June 12. In-state tuition and fees for undergraduates will increase by about $610, or 3.4%, for an annual rate of $18,346. Tuition and fees for nonresident undergraduate students will increase by $3,016, or 4.9%, for an annual rate of $63,962, according to information posted on the university's website.
Contact Sarah Atwood at satwood@lsj.com. Follow her on X @sarahmatwood.
This article originally appeared on Lansing State Journal: Michigan State University increases cost of tuition 4.5%

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