SAINT PAUL — The Minnesota State Board of Trustees approved a fiscal year 2027 operating budget Wednesday that includes an average undergraduate tuition increase of 6.25% across the system’s 33 colleges and universities.

The increase will raise annual tuition costs by an average of $357 at colleges and $578 at universities. Average full-time undergraduate tuition will total about $6,074 at Minnesota State colleges and $9,827 at universities before scholarships and grants.

Minnesota State officials said the increase comes as the system faces rising costs for technology, maintenance and salaries while receiving no new operational funding from the Legislature during the 2025 budget session.

System leaders said colleges and universities are also working to reduce expenses by closing low-interest programs, streamlining academic offerings, leaving vacant positions unfilled, implementing hiring freezes and delaying some facility and technology upgrades.

Minnesota State officials noted tuition increases across the system have averaged less than 3% annually over the past decade, helping maintain the lowest tuition rates among higher education options in Minnesota.

The system also highlighted financial aid and support programs available to students, including the North Star Promise scholarship program for qualifying families earning less than $80,000 annually, workforce development scholarships and expanded use of free course materials.

According to Minnesota State, 68.5% of associate degree graduates and 39.9% of bachelor’s degree graduates finished school without debt in fiscal year 2024. Among students who borrowed, median debt levels were $12,713 for associate degree graduates and $22,284 for bachelor’s degree graduates.