The MSU Board of Trustees unanimously approved the use of surplus state funding to assist financial aid programs, the creation of a new residential college and a plan to demolish and redevelop the University Village apartments, at Friday's meeting.

Administrators recommended $1.6 million in unexpected state funds be distributed into several financial aid programs for students from low-income families.

"There is no more critical need (than financial aid)," Trustee David Porteous said, adding that although the university needs investment in areas such as infrastructure maintenance, making sure students have the means to graduate is more important.

After months of planning and meetings, the proposal for a new residential college in the arts and humanities is set to open in Snyder and Phillips halls in 2007.

A group of students and faculty have met for several months to discuss plans, curriculum and the overall environment they want to see for the new residential college.

"I want to compliment the work of this group of scholars," Trustee Dee Cook said. "It was an incredible undertaking that didn't happen quickly and didn't happen overnight."

The board also approved a design contractor to redevelop University Village apartments on Kalamazoo Street.

The complex, with 456 apartments, was built in 1954 as temporary housing and will not last much longer, said Chuck Gagliano, assistant vice president of Housing and Food Services.

Luxury undergraduate apartments will be in place following the construction and will begin taking residents in fall 2007.

Current residents — mainly graduate and international students and their families — have until May 31 to vacate. Bob Darrow, Kristen Daum and Laura Collins contributed to this report.