The Michigan State University Board of Trustees unanimously approved a 5.9 percent increase for in-state undergraduates and 6.9 percent for out-of-state undergrads. Combined with housing, it will cost $14,837 for an in-state freshman to attend the university. To help offset the tuition increase, MSU again increased funds for financial aid and approved a new program, called the Spartan Advantage, to replace student loans with grants and work study for freshman whose families are at or below the federal poverty line - about $20,000 for a family of four. It will benefit about 350 of the estimated 7,350 incoming freshmen.