SAN FRANCISCO (AP) — The University of California on Thursday reported a 13 percent increase in students applying for undergraduate admission, driven by a surge in out-of-state applications and a new policy aimed at expanding the applicant pool.The UC system received nearly 161,000 applications, a record high, from freshman and transfer applicants for fall 2012, with all nine UC undergraduate campuses reporting gains, according to the university.The sharp increase shows demand for a UC education remains strong despite a series of sharp tuition increases prompted by state budget cuts. But the system can't accommodate the increased demand without more money from the state, officials said."Students will have a harder time being admitted to their campus of choice," said Kate Jeffery, UC's interim director of undergraduate admissions.UC officials partly attribute the increase to a new admissions policy intended to broaden the range of applicants. Under new rules that go into effect this application season, students are no longer required to take SAT subject exams, which made many qualified students ineligible for admission, officials said.The university reported the number of freshman applicants jumped 19 percent, while applications from students seeking to transfer from other colleges fell by more than 4 percent.The overall increase was driven by a 56 percent spike in freshman applications from students outside the state and country.