The new rates will impact only incoming students and current students who don't graduate within four years.
The proposal will move to the UNC Board of Governors, who have approved no tuition increase for in-state students for the past eight years.
FREE TUITION: The University of Texas system is moving to offer free tuition for students of families that make up to $100,000 per year, beginning next fall.
The bulk of American households meet this income threshold, according to the university, which says the new policy will cover 80% of its incoming classes.
Any senior who already paid will receive a refund, the school says.
University of North Carolina will be covering all tuition and fees for undergraduates who meet certain financial requirements.