Michigan Compiled Laws
Article III - State Aid for Universities and Student Financial Aid (388.1836...388.1894)
Section 388.1848 - Michigan Achievement Scholarships; Definitions; Eligibility; Reporting Obligations.

Sec. 248.
(1) The funds appropriated in section 236 for Michigan achievement scholarships must be distributed as provided in this section and section 248a, pursuant to the administrative procedures for Michigan achievement scholarships of the department.
(2) As used in this section:
(a) "Department" means the department of treasury.
(b) "Eligible institution" means a public university that receives an appropriation in section 236, a community college that receives an appropriation in section 201, a federally recognized tribal college in this state, or an independent nonprofit college or university in this state as described in section 1 of 1966 PA 313, MCL 390.991.
(c) "Gift aid" includes federal Pell grants under 20 USC 1070a, tuition incentive program benefits under section 256, state tuition grants under section 252, awards received for minimum payments awarded in subsection (4), higher education expenses paid under the Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, and all other federal, state, local, or institutional aid in the form of grants, scholarships, or discounts applied toward tuition and mandatory fees. Gift aid does not include student loans, work-study awards, qualified withdrawals made from education savings accounts to pay higher education expenses pursuant to the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486, or higher education expenses paid under the Michigan education trust program pursuant to the Michigan education trust act, 1986 PA 316, MCL 390.1421 to 390.1442.
(d) "High school equivalency certificate" means that term as defined in section 4.
(3) An individual must meet all of the following criteria and financial thresholds each year to be eligible for a Michigan achievement scholarship awarded under this section:
(a) Be a resident of this state for at least the immediately preceding year.
(b) Have graduated from high school in this state with a diploma or certificate of completion or achieved a high school equivalency certificate in 2023 or after.
(c) Be a full-time undergraduate student at an eligible institution, as defined by that eligible institution, and be a first-time enrollee in an eligible institution during the 2023-2024 academic year, or a subsequent academic year, within 15 months after high school graduation or attainment of a high school equivalency certificate or have received a Michigan achievement scholarship in a previous academic year. For the purposes of this subdivision, participation in a dual enrollment, early college, or other similar program while attending high school does not disqualify a student from being considered a first-time enrollee.
(d) Maintain satisfactory academic progress, as defined by the eligible institution in which the student is enrolled.
(e) Not be incarcerated in a corrections institution.
(f) Not be in default on a federal student loan.
(g) Timely complete the Free Application for Federal Student Aid and have an expected family contribution of $25,000.00 or less.
(h) Timely apply for all available gift aid for each academic year in which the individual applies for a Michigan achievement scholarship.
(4) Michigan achievement scholarships are subject to all of the following:
(a) Subject to section 248a(3)(f)(i), an eligible student may receive an award under this section or section 248a for a maximum of 5 academic years, not more than 3 of which may be for attending eligible institutions that are community colleges or federally recognized tribal colleges. A student may not receive an award under this subsection and section 248a(3)(f)(i) during the same academic year.
(b) The amount awarded to an eligible student at an eligible institution that is a community college or federally recognized tribal college must equal the sum of following:
(i) A minimum payment of $1,750.00, which is comprised of a base payment of $1,000.00 plus an additional payment of $750.00.
(ii) The lesser of $1,000.00 or the student's last-dollar payment amount.
(c) The amount awarded to an eligible student at an eligible institution that is a public university must equal the sum of following:
(i) A minimum payment of $2,500.00, which is comprised of a base payment of $1,000.00 plus an additional payment of $1,500.00.
(ii) The lesser of $3,000.00 or the student's last-dollar payment amount.
(d) The amount awarded to an eligible student at an eligible institution that is an independent nonprofit college or university must equal the sum of the following:
(i) A minimum payment of $1,000.00.
(ii) The lesser of $3,000.00 or the student's last-dollar payment amount.
(e) Money awarded under this subsection for a Michigan achievement scholarship must be paid to the eligible institution for credit to the student's account.
(f) As used in this subsection:
(i) "Last-dollar payment amount" means an amount equal to the tuition cost for an eligible student's courses at the resident rate, regardless of whether the student actually incurred that rate, plus the student's mandatory fees, minus all gift aid received by the student.
(ii) "Resident rate" means the lowest tuition rate charged to in-state students by the eligible institution, including, if any, an in-district tuition rate.
(5) The department shall work closely with participating institutions to provide the highest level of participation and ensure that all requirements of the program are met.
(6) The department shall ensure that Michigan achievement scholarships are well publicized and that high school students are provided information on the program. The department shall provide the necessary funding and staff to fully operate the program.
(7) The following reporting obligations apply to the Michigan achievement scholarship program:
(a) Beginning December 1, 2023, by December 1 of each year, the department shall provide a written report, organized by eligible institution, to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director that includes the following information for the previous academic year:
(i) The number of students who qualified for a Michigan achievement scholarship.
(ii) The number of students who received a Michigan achievement scholarship.
(iii) The average number of credits earned by students who received a Michigan achievement scholarship.
(iv) The number of Michigan achievement scholarships that were canceled due to failure to maintain satisfactory academic progress under subsection (3)(d).
(v) The number of Michigan achievement scholarships that were canceled due to a student ceasing attendance at an eligible institution. The number must not include any known transfers to another eligible institution.
(vi) The number of Michigan achievement scholarships that were canceled due to a student's failure to maintain full-time status.
(b) Each eligible institution whose students receive awards under this section shall cooperate with the department in a timely manner to facilitate the creation of the report under subdivision (a).
(8) Beginning April 1, 2024, by April 1 of each year, each eligible institution shall submit a report that provides the following information to the department, the state budget office, and the house and senate fiscal agencies:
(a) A description of each financial aid or scholarship program offered by the eligible institution to undergraduate students attending that institution, including the minimum and maximum dollar amounts available to a qualifying student for each program and the types of costs that awards from each program may cover. At a minimum, this report must include the amount of institutional aid, including student loans, work-study awards, merit-based scholarships, and need-based grants, offered by the institution.
(b) A description of any changes made to institutional undergraduate financial aid programs between the current academic year and prior academic year.
(c) The total institutional grant aid per full-year equated undergraduate student for the current institution fiscal year and for the immediately preceding 3 institution fiscal years. If the institution does not maintain total institutional grant aid per full-year equated undergraduate student at the average amount provided over the immediately preceding 3 institution fiscal years, the institution must include in the report a description of changes to institutional finances or the student population that prevented the institution from maintaining support for institutional aid. An institution's report of total institutional grant aid per full-year equated undergraduate student pursuant to this subdivision must be consistent with data most recently reported to the Integrated Postsecondary Education Data System.
(d) The number of students who received an award and the total dollar amount of awards for each program described under subdivision (a).
(9) For each fiscal year, an eligible institution becomes ineligible for funding under this section if, in the immediately preceding fiscal year, the institution exceeds 1 of the following tuition restraint requirements, as applicable:
(a) For an eligible institution that is a community college, the tuition restraint described in section 230(5).
(b) For an eligible institution that is a public university or independent nonprofit college or university, the tuition restraint described in section 265.
(10) It is the intent of the legislature that an eligible institution will not make changes to scholarship or financial aid programs offered by that eligible institution that have the goal or net effect of shifting the cost burden of those programs to the program described in this section.
History: Add. 2022, Act 212, Imd. Eff. Oct. 12, 2022

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