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CHAPEL HILL, N.C. – Despite protests by students, a Board of Governors committee approved a tuition hike for the 17 campuses in the UNC system. If the full board agrees on Friday, it will mean in-state undergrads will pay nearly $500 more next year.

“If we don't get our tuition to increase tomorrow and we get another budget to cut from the state, I don't know what's going to happen to my university,” said Renee Bindewald, student body president of UNC Asheville.

It's been a heated debate for months, whether tuition at North Carolina's 17 institutions statewide should will increase tuition next school year.

“I'm not a big fan of the tuition increase. I'm an in-state student so it's bigger for us than it is for out-of-state. I wish they could find a way to keep it down,” said UNC-Chapel Hill student Rachel Relyea.

On Thursday, the budget and finance committee passed a recommendation by system president Tom Ross to raise tuition by an average of 9 percent for in-state undergrads, totaling about $500 next year.

“I had to consider where our state is in its economy and I had to consider where our campuses are and the reductions we had to absorb over the last four years,” said Ross.

UNC system leaders said the tuition increase is essential to offset the $400 million in budget cuts state lawmakers passed last year. They say the tuition hike helps ensure the quality of education is maintained.

“It's unfortunate, but if it means the quality of my education stays high, then it's something I'm willing to go with,” said UNC-Chapel Hill student Clark Cunningham.

The committee also addressed options for financial aid after concern the extra tuition for one student would ultimately fund financial assistance for another. More than 50 percent of students receive need-based financial aid statewide.

“What you're hearing from our board is that they would like to reorder how that's done and look at whether that should be paid for by an appropriation for the state or by other sources like a lottery system,” Ross said.

The final decision is now in the hands of the Board of Governors. A vote is expected Friday.

In-state undergrads currently pay an average of about $5,300 in tuition and fees. The college board reports that's nearly $3,000 less than the national average.