Ann Arbor Times

One of Michigan's largest financial aid programs, the Tuition Incentive Program (TIP), has shown promise in enhancing college affordability and increasing the number of college graduates. However, many eligible students remain unaware or face challenges in accessing the aid. In the 2023-24 school year, TIP provided approximately $94 million to around 32,000 students statewide. Despite this support, participation rates are low among those who qualify.

Research conducted by the University of Michigan’s Education Policy Initiative at the Ford School of Public Policy highlights several barriers to participation. "We know that students can get bogged down in the application process of applying for financial aid, and that simplifying the process of applying for aid tends to increase take-up," said Katherine Michelmore, associate professor of public policy and study co-author.

The study utilized data from multiple sources, including state education departments and health services records, to track student progress from K-12 through college enrollment. It found that clear information about eligibility significantly impacts program uptake. Students with early Medicaid enrollment showed higher participation rates.

Another factor affecting participation is the completion rate of the Free Application for Federal Student Aid (FAFSA). Only about half of high school graduates complete FAFSA, which is necessary for receiving TIP aid despite not being used to determine financial need. The researchers suggest reconsidering this requirement as it may hinder access to tuition assistance.

Kevin Stange, another study co-author and professor of public policy, noted TIP's beneficial features but emphasized awareness issues: "These are all great, but if students don’t know about the program or their eligibility for it, that is a problem." He acknowledged ongoing efforts to improve communication about college affordability in Michigan.

The research team included Kelcie Gerson and Nathan Sotherland from U-M and Marissa Thompson from Columbia University. The study was funded by a grant from the U.S. Department of Education and Institute of Education Sciences.