Raleigh, N.C. — Trustees at the University of North Carolina at Chapel Hill on Thursday approved the maximum allowable tuition increase for in-state undergraduates and smaller percentage increases for out-of-state students and graduate students.

North Carolina State University trustees also were considering a tuition increase Thursday.

Lean economic times have forced officials at the UNC system's 16 campuses to cut budgets by 4 to 5 percent in the current fiscal year that ends next June. The UNC Board of Governors passed a $3 billion budget for 2009-10 that sought the smallest increase in state funding in 20 years.

Tuition increases are one way to offset some of the reduced funding next year. But two years ago, the UNC Board of Governors capped any tuition increases at 6.5 percent.

UNC-Chapel Hill Chancellor Holden Thorp recommended a 6.5 percent tuition increase for in-state undergraduates, as well as a 4.4 percent increase in student fees.

Trustees approved Thorp's recommendations, adding $241 to tuition bills for in-state undergraduates, $1,339 for out-of-state undergraduates and $400 for graduate students.

N.C. State trustees were discussing a proposed 3.6 percent tuition increase and 6.3 percent rise in student fees – approximately $72. In-state undergraduates would pay about $140 more a year, and out-of-state students, about $582 more.

North Carolina Central University on Wednesday approved a 3.1 percent raise for undergraduates – or $69 – and 6.5 percent for graduate students. The university has not raised in-state undergraduate tuition for three years.

After the increases, in-state undergraduates would pay annual tuition rates of $3,946 at UNC, $3,997 at N.C. State and $2,287 at N.C. Central. Out-of-state undergraduates would pay $21,942 at UNC, $16,740 at N.C. State and $12,393 at N.C. Central.

Proposals from the universities must be approved by the system's Board of Governors, which will make its decisions early next year.