The University of Michigan made waves on Thursday, June 15, announcing the creation of the Go Blue Guarantee, which provides all in-state students with a family income of up to $65,000 with free tuition for four years.
ANN ARBOR, MI – The University of Michigan made waves on Thursday, June 15, announcing the creation of the Go Blue Guarantee, which offers all in-state students with a family income of up to $65,000 free tuition for four years.
So how does it work and who qualifies?
The Go Blue Guarantee takes effect in January 2018 for both current and future students, UM Spokesman Rick Fitzgerald said.
At that time, UM will recalculate currently-enrolled students’ financial aid. Among prospective college students, UM President Mark Schlissel said around half of all Michigan families would qualify for the guarantee.
UM Vice Provost for Enrollment Management Kedra Ishop said students receive their financial aid packages next month for the coming academic year. UM will then re-package their financial aid in late fall for the winter term.
« We know that we have just about 3,000 students on campus that have incomes below $65,000, » Ishop said. « A good portion of them will qualify, or already qualify for tuition support. »
University of Michigan offering free tuition for families making less than $65K
The financial support initiative does have an asset limitation of $50,000 or less – well above the federal asset limitation for Pell grant eligibility, and the average assets of the current population who earn $65,000 a year, Ishop said.
The income figure is based on total family income, including students.
« We use a portion of equity for 2018-19 for up to 1.5 percent of home equity and 1.5 percent of income is capped for families, » Ishop said. « So a family who earns $65,000 would have an asset cap for home equity at 1.5 percent of their income, which is about $1,000. That is about how much would count against the asset limitation.
« We require non-custodial parent information, and we work individually with the family to see if there are exceptions to what we would require from them. »
Ishop said UM also allows for up to $50,000 in savings, and retirement income is not included in reporting for eligibility. There is no cap on the number of students eligible for the Go Blue Guarantee.
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The Go Blue Guarantee does not include students who attend UM-Flint or U-M Dearborn, Fitzgerald noted.
Ishop said tuition-specific scholarships, including Pell grants, still count toward a student’s total payment of their tuition bill, with UM covering the difference under the Go Blue Guarantee.
« Some students might have a $15,000 gap that needs to be closed, and some students might have a $500 gap that needs to be closed, » she said.
That means financial aid in the coming year will more than cover a $424 increase in the most common lower-division, in-state tuition for the academic year that was approved in the general fund budget for fiscal year 2018.
University of Michigan hikes tuition 2.9 percent for in-state students
The university also provides need-based financial aid to out-of-state students from families with incomes up to $90,000 a year.
In-state undergraduate tuition will increase by 2.9 percent to $14,826 for the most common lower-division rate. Comparable tuition for out-of-state undergraduates will be $47,476, an increase of 4.5 percent. Tuition for most graduate programs will increase by 4.1 percent.
Regent Denise Ilitch said she has tried to hold down tuition rates in her time as regent, but she saw this year’s increase as a way to keep pace with inflation. She said she’s « beyond excited » about the Go Blue Guarantee.
« It’s a promise to the people of Michigan that displays our deep commitment to financial aid for students and families who need it most, » Ilitch said. « This will change lives forever. »
The undergraduate financial aid budget has increased 11.3 percent per year, on average, over the past decade. This compares to an average annual growth rate of 4 percent for in-state undergraduate tuition.
The university’s need-based financial aid program includes all in-state students with financial need and typically includes Michigan families earning up to about $125,000 a year or more, depending on specific circumstances.
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