Michigan gives grants to districts that require students to fill out FAFSA

Michigan schools can opt to make filling out a free federal financial aid form a graduation requirement
Completing the form helps students get information about personalized costs to attend college or trade school
Efforts to make a statewide requirement have failed but one advocate hopes local districts’ efforts will show the program works

Should Michigan high school seniors be required to fill out a federal financial aid form to graduate high school?

In some school districts, leaders are saying yes — and the state is handing out money to districts to encourage them to adopt such policies.

The Michigan Department of Lifelong Education, Advancement, and Potential recently announced that it had awarded $10 million in grants to 67 school districts as part of its Universal FAFSA Challenge. FAFSA, or the Free Application for Federal Student Aid, is used to determine if students qualify for grants, scholarships, loans and work study opportunities. It’s also the required form to be considered for the state’s signature scholarship program.

Districts with a FAFSA graduation requirement must also offer an opt-out form for some students.

The Universal FAFSA Challenge program, which is in its second year, is the latest state effort to encourage more people to consider, attend and complete college.

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Gov. Gretchen Whitmer has set a goal that by 2030, 60% of working age adults in Michigan will have a skills certificate or college degree, up from the current 51.6%.

School leaders told Bridge they are making more effort to help high school students think about their futures after high school. Statewide, 53.4% of high school graduates enroll in college within six months.

Meanwhile, about 41.8% of state high school seniors have completed the FAFSA, an increase from 37.7% at the same time last year, according to the Michigan College Access Network Michigan FAFSA Tracker.

“Getting kids to figure out their career path early really helps them understand the importance of filling out the FAFSA and how that can help them in securing funds to go to college,” said Dearborn Public Schools communications director David Mustonen.

Dearborn received nearly $1.3 million from the state grants last year and Mustonen said the district plans to use the funds over three years.

School district leaders report more efforts to connect students and their families with college application information. This includes informational meetings, making school staff available to help with completing the federal form and college visits.

“Now, scholars who are required to do the FAFSA and are required to actually be thinking about those next steps, we’re seeing a high rate of scholars who are being admitted into colleges,” said Ypsilanti Community Schools Superintendent Alena Zachery-Ross.

Zachery-Ross’ district received nearly $247,000 for FAFSA efforts in 2025 and was one of 75 districts to receive funds last year.

Here is what to know about the FAFSA and the state’s efforts to increase students completing a college degree.

What is the FAFSA?

The FAFSA is a paper and online form.

Current and prospective college students fill out the free form to be considered for scholarships, grants, federal work study and loans. Colleges and trade schools use the information in the form to determine if a student qualifies for aid they don’t have to pay back and loans they do have to pay back.

In Michigan, the FAFSA is the key form to be considered for the Michigan Achievement Scholarship. The program pays up to five years of attendance at public university or private college in the state. It also pays for students to attend community college tuition-free.

Does the FAFSA require students to commit to college?

No.

Are all high schools required to have a FAFSA graduation requirement?

No.

Lawmakers have tried in the past to require high school seniors to complete the FAFSA but those efforts have not been successful.

The Legislature held testimony on a potential statewide requirement in December 2024 but the bill did not pass. The bill would have required the class of 2028 and beyond to fill out the federal form or an opt out form to graduate.

Ryan Fewins-Bliss, executive director of the Michigan College Access Network, which works to increase the number of people with skills certificates and degrees, told Bridge he hopes the local districts show this type of policy can exist and help students.

“The sky isn’t falling,” Fewins-Bliss said. “The graduation rates are not reducing. The world didn’t end by asking people to take this step to think about their future. I’m hoping this becomes a proof point that this policy works.”

Twelve states had FAFSA policies for the class of 2025, according to an analysis from EdTrust, a research and advocacy organization. Louisiana was the first state to require FAFSA completion but repealed the requirement in 2024.

Michigan has not mandated completing the form but has offered incentives aimed at getting more people to complete the form. In 2025, students could receive up to $50,000 toward their college education. In 2024 during a tumultuous federal financial aid cycle, students could win a year of free pizza.

In April, the state agencies will host an event on Ford Field in Detroit for high school juniors and seniors to learn about career and college opportunities, according to information provided to Bridge from MiLEAP. Students will be able to fill out the FAFSA on site.

What happens if a student doesn’t fill out the form?

Local school districts who participate in the grant funding program must offer students an option to opt out.

Which school districts received funds?

There were 67 districts who received funds from MiLEAP this year and 75 the year before. Districts funds based on the number of high school seniors they have.

You can see the full list of districts for 2026 here and 2025 here.

What are school districts using the funds for?

Ypsilanti Community Schools and West Bloomfield School District both received funds in 2025 and have FAFSA graduation requirements.

Zachery-Ross of Ypsilanti said her district has used the funding gift cards card incentives for students who complete the FAFSA and apply to at least one college. The funds have also paid for food for parent meetings, stipends for staff members to be FAFSA champions and college visits for interested students.

“We were focused on graduating but we did not have that focus of how many of them are actually applying to and are being admitted into college,” Zachery-Ross said.

West Bloomfield’s nearly $416,000 grant covers college visits, scholarship club support and a college application bootcamp, said public relations and communications supervisor Andrea Frank.

The district hosts student workshops that focus on test preparation, FAFSA guidance, college and career options, military information and letters of recommendations.

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