WEST LAFAYETTE, Ind. -- Purdue University wants a 5 percent hike in tuition for in-state students and a 6 percent student for students from out of state for the next two years.

Tuition for in-state residents was $7,750. The proposed increase would put the cost at more than $8,000, 6News' Renee Jameson reported.

The twin daughters of Ann Sheetz -- Olivia and Emily -- will be Boilers in the fall.

"When you multiply that by two, it's a pretty big expense for our household," Sheetz said.

Along with the tuition increase, there's also a $500 fee for new students to be used for academic improvements.

The school will utilize stimulus funding from the General Assembly to rebate Indiana undergraduates this year.

"In spite of an economic downturn, we still have 40,000 students here on campus expecting to receive a world-class education," said Provost Randy Woodson.

Purdue leaders said the state worked hard to offer the best funding possible, but said the university's needs are substantially underfunded.

"It actually makes it more difficult for us to keep Purdue affordable when we're resource limited," Woodson said.

If the tuition increase is approved, it will add $388 a year in costs for Indiana students and $1,394 a year for out-of-state students.

"I try not to think about it, but it's still kind of hard with all the increases and everything," Emily Sheetz said.

"We'll just have to find ways to cut in our household," Ann Sheetz said. "We'll have to sacrifice."

A pay increase freeze is also in place for Purdue employees for at least the next year.

The university will have a public hearing on the tuition increase proposal on July 13. The board of trustees will vote on the tuition and fee plan at that meeting.