Michigan public university tuition tops $17K on avg.; financial aid can save 47%

Tuition for students at Michigan’s public universities increased
Michigan students pay about half with financial aid
State appropriations linked to increased cost

Tuition for full time, resident undergraduates enrolled at Michigan’s 15 public universities increased for 2025-26 to an average of $17,105, according to a new report from the Michigan House Fiscal Agency.

Compared to 2024-25, that’s a 4.43% increase of $726 from $16,280. It’s also nearly double the inflation-adjusted average tuition cost of $9,008 in 2001-02.

Average tuition for 2025-26 ranges from $13,680 at Saginaw Valley State to $22,084 at Michigan Tech.

But the typical student doesn’t pay anywhere near the sticker cost of a university’s tuition, said Dan Hurley, CEO of the Michigan Association of State Universities.

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Students pay a “net” cost, which is the bottom line after financial aid from the federal and state government is applied, along with aid from the institution where a student attends. That reduces a Michigan student’s tuition cost on average by 47%, Hurley said.

Many students and families overestimate the cost of college, Hurley said.

“It’s a perception issue, but it’s also concerning because it’s certain headlines and certain exposure that can scare young adults off from going to college because they think it costs too much,” Hurley said.

After a student fills out a Free Application for Federal Student Aid, or FAFSA, form, they qualify for financial aid: upward of $7,395 from a Federal Pell Grant; up to $27,500 over five years from the Michigan Achievement Scholarship and more from several other state-funded grants and scholarships, which totaled $375.4 million in 2023-24.

Michigan’s 15 public universities also contribute over $1 billion annually to students in financial aid, including the free tuition programs at the state’s 15 public universities.

“When you factor that all in, that net price of attendance continues to decline,” Hurley said.

Public university tuition in Michigan has increased over the last 10 years by about 44% on average. But the net price of college as a percentage of household income has been decreasing, according to research by the Michigan Association of State Universities.

Hurley attributes the decline in recent years to the Michigan Achievement Scholarship, a flagship program created in 2022 for recent high school graduates that began initially with $250 million and grew to nearly $1.2 billion over three budget cycles to assist tens of thousands of students.

Promise scholarships, available in more than a dozen communities, also help students reduce tuition cost, added Sen. Sarah Anthony, D-Lansing.

“We still know that college is worth it, whether you are looking for a two-year degree, four-year degree or skilled trade, but we need more folks who are trained,” said Anthony, who previously served as deputy director of the Michigan College Access Network. “So we have been trying to work on policies that lower barriers for kids, and affordability is something we have done a pretty good job on.”

State funding used to account for most of the cost of public university operations but that has since flipped, Hurley said. In 1979, state appropriations made up 70% of operating revenues for Michigan universities while tuition made up 30%.

tuition graphic — State divestment in higher education means tuition now accounts for a growing share of state universities’ operating revenue.
Source: Michigan Association of State Universities

Decades later, Hurley said, that funding model has flipped: students and families pay tuition that accounted for 78% of universities’ operating funds in 2025 while 22% came from the state.

Tuition costs have increased as a result of state divestment in higher education over the years, Hurley said. Since 2002, a combination of state budget cuts or increases in appropriations that are less than inflation have led to state funding being down $1.3 billion with inflation.

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