Under the plan, average tuition and fees for a full-time in-state student within the seven-campus system will grow by $720 a year, to $7,822.
The board, meeting today in Presque Isle, also endorsed an 11%increase in student financial aid to help offset higher tuition rates.
University officials said the system was grappling with big increases in costs, including heating oil and health care.
The new fiscal year budget includes a reduction of nearly 16-million dollars, or 3%, in personnel and operating costs. It eliminates 139 jobs, some of which are currently vacant.
Chancellor Richard Pattenaude said that even with the tuition increases, the University of Maine remains the least expensive of the six New England flagship campuses.