Michigan's Tuition Incentive Program: Understanding Take-Up

This report explores the factors that influence take-up of Michigan's Tuition Incentive Program (TIP), one of the state's largest financial aid programs that provides free community college to low-income students based on their childhood participation in Medicaid. This report draws on semi-structured interviews with high school counselors, program administrators, and staff members in financial aid offices at Michigan higher education institutions.

Key findings

1. Incomplete knowledge of the program: According to high school counselors, many students were unaware of their TIP eligibility. Counselors specifically highlighted that the chosen notification method – the U.S. postal service – caused this information gap, as students may not have received or opened the letter, did not understand or remember it, or discarded it.
    
2. FAFSA is a barrier to participation: Students must fill out the FAFSA to access TIP. Counselors perceived a lack of parental buy-in that prevented some students from completing the FAFSA. Without parental consent, students cannot submit the FAFSA on their own, and without it, they cannot receive TIP aid.
    
3. Linking a complex web of fragmented administrative systems: TIP administration involves two state agencies, 31 public community colleges and specific programs at select four-year institutions, a third-party data portal, and school counselors. While counselors have no official role in administering TIP, they play a key role in helping students navigate access to the benefits they are entitled to.

This study is part of a larger mixed-methods evaluation conducted in partnership with the Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP).  An earlier policy brief found that only 29% of eligible students who enroll in a qualifying program receive TIP funding within two years of high school graduation, and take-up varies considerably across high schools. This brief presents qualitative findings explaining what might contribute to inconsistent take-up, identifies barriers to accessing and administering the scholarship, and proposes policy recommendations. Michigan has made efforts to address these challenges, working to increase outreach and streamline
financial aid distribution and communication. Future work will investigate how these changes have improved take-up in Michigan and inform policy in other states. You can find all EPI research here and TIP quantitative results here.