The University of Kentucky (UK) will raise tuition by 3 percent for in-state undergraduate and graduate students in the next academic year, this is the smallest increase since 1997.

This increment is quite small, when we see that the university has hiked its tuition by 154 percent since 2002

As a result, the in-state undergraduate students will pay $10,110 in the 2013-14 academic year. This is the first time the tuition has touched $10,000.

Meanwhile, tuition for out-of-state undergraduate and graduate students will increase by 6 percent, which comes up to $21,203 for an undergraduate student.

However, departments of pharmacy, medicine and dentistry will hike their tuition for out-of-state graduate students by only 3 percent because of competitive markets.

On the other hand, the university is also boosting its housing costs by 3 percent for regular dorm housing and 4 percent for premium housing.

Therefore, a traditional double-occupancy dorm room will cost $2,323 a semester and a premium double-occupancy room will be charged $3,325 a semester.

The UK Board of Trustees approved the proposed hike, Tuesday. Now, it has to be accepted by the Kentucky Council on Postsecondary Education before the fee structure can be implemented.

"One important way that manifests itself is in our efforts to create a high-quality learning environment that is more affordable and accessible to more Kentucky families," President Eli Capilouto, said.

Board of Trustees Chairman Britt Brockman said that the board wanted to increase the tuition in such a way that it will not prove to be a burden for Kentucky families and help the university officials cope up with the decreased state funding.