ERIE--The Penn State Board of Trustees on Friday approved a 5.9 percent increase in tuition for the 2008-09 school year, the highest increase since 2005.

Still, "our tuition increase is going to be below the average of similar institutions," Penn State President Graham Spanier said during a presentation during Friday's board meeting. "I'm very pleased that we were able to keep it at a reasonable level, given the very modest appropriations."

Penn State received a 1.2 percent increase in state appropriations this year. The trustees had recommended a 6.9 percent increase in state appropriations last September.

"With the state appropriations being low, I think it's been obvious for a number of years that Pennsylvania, as well as some other states, are moving towards a tuition-driven formula," Vice President for University Relations Bill Mahon said.

Tuition for freshman and sophomore Pennsylvania residents at University Park will be $13,014 per academic year, a 5.9 percent increase from last year. Tuition also increased 5.9 percent in 2005.

"It's disappointing, but it's what I was expecting," University Park Undergraduate Association President Gavin Keirans said. "It's indicative of the national trend."

According to a slide during Spanier's presentation, Penn State's tuition is higher than most of its Big Ten peers.

Tuition for freshman and sophomore non-Pennsylvania residents at University Park will be $24,248 per academic year, a 4.7 percent increase from last year, while tuition for both residents and non-residents at Commonwealth Campuses will increase by 5.3 percent.

Tuition for out-of-state residents is becoming close to the level of private institutions, Keirans said.

"If it continues like this it's really going to become an issue," Keirans said. "There's going to be a lot of people that can't afford the Penn State education."

However, students will be helped by Penn State's new role as a direct lender of financial aid, Spanier said. About 2,000 students have used the new direct loan program to pay for their summer tuition, amounting to about $7.6 million in financial aid, according to Collegian archives.

"This new system is one we had to adopt, given what's happening in the credit markets and the financial industry," Spanier said. "It will open up all the doors possible for students so they can both receive appropriate financial assistance but also have it processed in a timely way."

Despite the increase in tuition, Mahon said Penn State is still expecting to receive more applications than last year.

'That's a reflection of Penn State quality," Mahon said.