Michigan's Tuition Incentive Program: A Model for National Need-Based Financial Aid

The state of Michigan has set a goal to increase the percentage of residents with a postsecondary degree or credential to 60 percent by 2030. Achieving that goal will require a concerted, strategic, and multipronged effort. Today, less than 50 percent of residents have attained a postsecondary degree or credential. While making college more affordable alone will not clear all the impediments to achieving the state's attainment goal, the cost of college is a formidable barrier for many. Students from low-income families are especially sensitive to price increases, and it's these students who must attend and complete at higher rates if the state is going to markedly grow its postsecondary completion rate. Yet, students from low-income families and first generation students have been disproportionately impacted by the pandemic, as reflected in lower college enrollment rates, and may need additional support and flexibility simply to enroll and complete college at levels seen in the recent past, let alone achieve the increases needed to reach the state's attainment goal. This report focuses on one of Michigan's key levers to making college more affordable for low-income students, analyzing the state's largest, most generous, and best targeted college grant program, the Tuition Incentive Program (TIP). TIP stands out in Michigan, and in comparison with grant programs in other states, due to its well-targeted and categorical method of defining eligibility and benefits. This program could serve as a model for other states as they seek to expand college access and success. The report describes the program's strengths and offers recommendations for policymakers to bolster it, including by expanding the eligibility criteria, and further aligning the incentives of the program with the state's attainment goal.