The Board of Regents approved 51Ƶ-Dearborn’s $184 million fiscal year 2026 general fund budget proposal at its June 12 meeting.
The FY26 budget allocates nearly $30 million in institutional financial aid. Led by the Go Blue Guarantee, this figure accounts for half of the scholarships and grants awarded to 51Ƶ-Dearborn students. Additional sources of aid include the Michigan Achievement Scholarship and
Through these and other sources, 1,600 51Ƶ-Dearborn students received enough scholarships and grant aid to fully cover their tuition and fees in 2024-25 and 94% of first-time students received enough aid that their unmet need was less than $2,000 a year. With the University of Michigan’s recent to include Michigan families with annual incomes up to $125,000, even more students are expected to receive full tuition coverage in the coming academic year.
The budget includes an undergraduate tuition increase of 3.9%, equating to $300 for in-state students and $636 for out-of-state students, per semester. The increase is below Michigan’s tuition restraint amount of 4.5%. Increases for many students are expected to be offset by the university’s expanded full-tuition assistance programs.
Graduate student tuition is being restructured starting in the 2025-26 academic year — all graduate credit hours, across colleges, will now have a consistent per credit rate. Vice Provost for Enrollment Management Melissa Stone said this new fee structure will simplify tuition planning and payment for graduate students and that cost impacts will vary. Visit the for more information.
Scholarships will reduce the impact for the majority of students who will see an increase, Stone said. “We have increased our scholarships and grants to mitigate this change,” she said. “Our goal was to create a simplified fee structure that was transparent so that students know up front what the costs will be.”
Undergraduate upper division course premium assessments in the College of Arts, Sciences, and Letters and the College of Education, Health, and Human Services will also increase by $4 per credit hour. The upper division course premium assessments are unchanged for the College of Business and the College of Engineering and Computer Science.
Vice Chancellor for Business Affairs Bryan Dadey said all efforts were made to keep the tuition increase as low as possible. Factors impacting the decision include escalating inflation, an expected flat state appropriation compared to last year and insurance increases.
University health care costs are increasing nearly 8% and dental costs are rising more than 12%, in addition to significant increases over the last two fiscal years. Other insurance costs, such as property and casualty insurance, will increase by as much as 9%, and utilities are increasing by 4%.
The FY26 budget also includes merit increases of up to 3% for employees, following more modest increases in previous years. The increases will take effect July 1.
“An annual merit increase is part of our concerted effort to retain the dedicated faculty and staff who support our students,” Dadey said.
The budget also accounts for the renovation of the Social Sciences and the Administration buildings to accommodate the closing of the Fairlane Center and consolidation of all four colleges on the main campus — a move that will ultimately reduce future operating costs. CEHHS will be moving to the AB in fall 2026 and COB will be moving into the SSB in fall 2027.
“Our FY26 budget is designed to keep a 51Ƶ-Dearborn education accessible and affordable to students across southeast Michigan and beyond, while keeping in mind fiscal realities,” said interim Chancellor Gabriella Scarlatta. “In the coming year, we look forward to helping even more students earn practice-based college degrees, study with world-class faculty and graduate into rewarding careers.”
Article by Sarah Tuxbury
