The MSU Board of Trustees unanimously approved a proposal in June to raise housing rates across the board by 6 percent starting this fall.
The higher cost of living on campus can be attributed to inflation rates, increasing Ethernet usage, maintenance and bus services, said Charles Gagliano, assistant vice president for University Housing and Food Services.
The decision to raise rates will be the start of MSU students shouldering the burden of state funding cuts, expected to be upward of $60 million.
For the first time, students are being charged for using the Internet - a fee of $57 each year starting in the fall.
"Our rates cover other services normally not covered by other universities," Gagliano said.
About 14,500 students - 65 percent of returning students - are living in the 24 residence halls across campus.
University spokesman Terry Denbow said the board can change housing rates even though students reserved their rooms earlier this year. When students sign up for a room, there is a note on each contract that states all rates are pending board approval, he said.
Gagliano said the increase also will allow the university to have money in reserves when officials start renovating Snyder and Phillips halls, as well as adding a seventh dorm to the Brody Complex. The projects will start between 2004-06.
"(The increase) guarantees other students won't see peaks as specific maintenance projects occur," Gagliano said.
Trustee David Porteous, chairman for the Board of Trustees, said the increase is important as residence halls undergo renovations to add critical safety features.
"Our housing rates are very affordable," Porteous said. "Even with the increase, of all public universities in the state, we would be the lowest."
MSU housing rates also are low among other Big Ten universities.
In 2002-03, the cost of living on MSU's campus was $1,434 cheaper than the University of Michigan. U-M is expected to increase its housing rates by 3.6 percent for the academic year.
