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Michigan’s new free college program is underway

Last week, Michigan governor Gretchen Whitmer signed off on a new higher education budget that will fund free college for high school graduates from 2023 or 2024. Students who attend full-time can receive up to $4,800 in tuition-and-fees credit to study at a community college. Prospective students must also fill out the Free Application for Federal Student Aid (FAFSA) to qualify.

The State estimates that as many as 18,000 eligible students may take advantage of the free college program, but there are a few gotchas. Currently, only about 30% of community college students enroll full-time. That’s a huge downside for students who need to work – and the number of teenage students who need to work to pay household expenses is increasing. Full-time attendance – as defined by the Department of Education – is a minimum of 12 credits per semester. If a student takes only 12 credits, they will not complete enough credits to graduate with a degree in four semesters. That extends the need to attend a community college by another 12-credit semester. It won’t necessarily mean a reduction in financial aid, but it could mean a winter transfer for students who intend to continue at a four-year university.

The program will pay for up to three years of full-time enrollment. At 12 credits per semester and $160 per credit, that’s a total of 90 credits – far more than a student needs to graduate with an associate degree. The stipend does leave room for indecision, changing majors, and other potential delays – like scheduling snafus. That’s not necessarily good because it may encourage students to dawdle.

Free college program places too much emphasis on full-time enrollment

Second, the stipend may encourage Michigan community colleges to raise tuition and fees to meet the state’s $4,800 annual aid cap. Currently, WCC’s tuition rate (with fees) is $114 per credit hour. The state’s stipend will pay as much as $160 per credit hour. This is an open invitation to raise tuition-and-fees to take advantage of the state’s generosity. However, many students don’t attend college right out of high school, aren’t eligible for the free college program, and may pay higher tuition rates. Enrollment data show that when WCC raises tuition by $4 or more per credit hour, enrollment drops.

Third, the program rules require students to meet their institution’s Satisfactory Academic Progress (SAP). What is the likelihood that schools may modify their SAPs to ensure that the money keeps flowing, even for marginal students?

The free college program places too much emphasis on full-time enrollment, which doesn’t fit the current attendance profile of most Michigan community college students. If the state’s estimate of 18,000 students is correct, this means an average increase at each Michigan community college (and tribal colleges) of about 580 students per institution. While that’s nothing to sneeze at, similar programs for other prospective students haven’t fared as well. Michigan might be better off working on programs that can help part-time students manage the cost of attendance.

Photo Credit: Camosun College , via Flickr