Michigan “Free” Community College Programs: Is there still a need for scholarships?
Dawn Dyer Magretta, CFRE, Executive Director, Schoolcraft College Foundation
Carole Booms, Director of Major Gifts, Schoolcraft College Foundation
Lisa Brooker, Director of Financial Aid, Schoolcraft College
Join the Foundation’s Scholarship Specialist and the Director of Financial Aid from Schoolcraft College as they discuss the continued need for private scholarships in light of ‘free college’ legislation.
The short answer is YES!
We get asked by donors often if there is a need for philanthropic scholarships now that the State of Michigan has several scholarship opportunities that are billed as “free.”
Michigan’s ambitious free college initiatives, while laudable in its intent, have encountered some challenges in its implementation.
Community College Guarantee & Michigan Achievement Scholarship
For high school students graduating in 2023, the Michigan Achievement Scholarship was started to pay for tuition to any public community college and/or four-year university. This scholarship is still available for students working on their bachelor’s degree at a four-year university. In 2024, the State implemented the Community College Guarantee specifically for the community college path.
The Community College Guarantee aims to provide tuition-free education to recent high school graduates. However, its rollout has had some bumps and left certain segments of the population feeling left out.
The primary issue lies in the program’s geographic limitations. In-district residents pay for property taxes supporting their local community college, thus why only in-district students receive tuition for free.
Approximately 20% of Michigan residents, primarily those in rural northern areas and some suburban counties including Livingston County that do not have an in-district community college, do not live within a community college district. For these individuals, the “free” college offer translates to a discounted rate rather than fully covered, in-district tuition. This disparity has created confusion and disappointment among potential students who heard about free community college on the news, only to discover they don’t qualify for the full benefit. For example, at Schoolcraft, 51% of our students are from out of state and 3% are international students.
Another challenge is the complexity of the program’s rules and eligibility criteria. Students must enroll at their local community college within 15 months of graduating from high school and, together with their parent(s), complete the Free Application for Federal Student Aid (FAFSA) annually to renew their scholarship for up to three years. While these requirements are designed to ensure the program’s sustainability, they can be daunting for some students to navigate. And, if their parent(s) don’t complete a FASFA, as many don’t, the student most likely will be ineligible.
Funding Needs
Moreover, the focus on tuition-free education overlooks other significant costs associated with attending college, such as textbooks, transportation, and living expenses. For low-income students, these additional burdens can still make higher education financially challenging.
As open admission institutions, community colleges support non-traditional students, including those who haven’t obtained a high school diploma or a GED, as well as international students. These students can’t file a FASFA and do not qualify for federal or state tuition programs.
Alternative funding sources are crucial to helping close the gap for students who don’t meet the criteria for state and federal programs, have to pay out-of-district tuition or are taking a program, like nursing, that requires significant costs to students over and above tuition. International students’ tuition is even more than out-of-district costs.
Often, community college students are working full-time and therefore don’t want a course-load of 6+ credit hours. The Community College Advantage requires students to attend full-time.
Another group of students are in non-financial aid eligible programs like phlebotomy, pharmacy techs, EKG techs, and more. Private scholarships and philanthropic support still remain an important resource to students.
Michigan Reconnect (MI Reconnect)
In 2021, MI Reconnect was rolled out which provided tuition to community college students aged 25 and above who have not obtained a degree in the past. This scholarship pays for in-district tuition and (more recently) fees only. At Schoolcraft, approximately 50 percent of our students are out-of-district, which leaves a tuition gap for these students. Also not funded are fees, books, supplies, and other educational expenses which are helped by private scholarships. Philanthropic support remains important to many of these students.
Currently, the state was able to open this opportunity to students aged 21 and above, but that is scheduled to end in May 2025 which will leave a gap for this population of students. Philanthropic support remains important to many of these students. Please note, the deadline to apply if you are 21 – 23 is December 31, 2024.
The Community College Guarantee
Community colleges in Michigan continue to play a vital role in the state’s education system and economy. These open admission institutions offer numerous advantages that cater to a diverse range of students, most non-traditional students.
One of the most significant benefits is affordability. Even for those who don’t qualify for the full tuition-free benefit, community colleges charge much lower tuition rates compared to four-year institutions, making higher education more accessible to students from various economic backgrounds.
Flexibility is another hallmark of Michigan’s community colleges. They offer a variety of class schedules, including evening, weekend, and online courses, allowing students to balance their education with work and family responsibilities. This adaptability is particularly beneficial for adult learners and those juggling multiple commitments.
The personalized attention students receive at community colleges is also noteworthy. With smaller class sizes, instructors can provide individualized support, fostering a more engaging and interactive learning environment. This close-knit atmosphere encourages students to ask questions and seek help, enhancing their educational experience.
Furthermore, community colleges in Michigan serve as crucial launching pads for career advancement. Many programs focus on vocational training and skill development, equipping students with qualifications needed for in-demand jobs in Michigan’s evolving economy. This practical approach to education allows students to enter the workforce sooner, often with lower levels of student debt. The Community College Guarantee, represents a significant step towards increasing college attainment in the state. Michigan Governor Gretchen Whitmer’s administration has set an ambitious goal of 60% of working-age residents holding a postsecondary credential by 2030. While there are some hiccups, it undoubtedly opens doors for many Michigan residents to pursue higher education and contribute to the state’s economic prosperity.
Michigan Reconnect (MI Reconnect)
In 2020, MI Reconnect was rolled out which provided tuition to community college students aged 25 and above who have not obtained a degree in the past. This scholarship pays for in-district tuition only. At Schoolcraft, approximately 50 percent of our students are out-of-district, which leaves a tuition gap for these students. Also not funded are fees, books, supplies, and other educational expenses which are helped by private scholarships. Philanthropic support remains important to many of these students.
By the Numbers
Approximately 66% of undergraduates in the U.S. have enrolled in a community college at some point after completing high school according to the 2019 National Survey of College Graduates (NSCG). Additionally, more than half of the graduates who earned their first bachelor’s degree between 2008 and 2017 had previously attended a community college (Foley, Milan, & Hamrick (2021).
Community colleges receive a relatively small portion of philanthropic donations designated for higher education. In 2023, they received only 1.5% of the total $58 billion in donations allocated to higher education. This amounts to approximately $870 million (Whitford, 2022).
Despite their crucial role in providing accessible education to diverse and often underserved populations, community colleges still receive a disproportionately low share of philanthropic support compared to four-year institutions https://www.insidephilanthropy.com/home/2024-7-25-community-colleges-making-the-most-of-philanthropic-dollars-to-bring-equity-to-higher-education (Mills, 2024).
In Michigan, the percentage of high school graduates who enrolled in a community college within six months of graduation has decreased over the past decade. For the Class of 2023, this percentage was 15.3%, down from 25.8% for the Class of 2014 https://crcmich.org/despite-new-scholarships-michigan-college-enrollment-still-falling (Schneider 2024).
In Michigan, community colleges receive a relatively small portion of philanthropic donations designated for higher education. While specific state-level data is limited, nationally, community colleges receive about 1.5% of the total philanthropic donations to higher education1. Applying this percentage to Michigan’s context, if we consider the national trend, community colleges in Michigan would receive a similar proportion of the total philanthropic dollars.
For example, if Michigan’s higher education institutions received $1 billion in philanthropic donations, community colleges would receive approximately $15 million.
Summary
While Michigan offers several post-secondary tuition programs to help residents access higher education (see chart at right), there still is unmet need for many students. At community colleges, we see non-traditional students who have many barriers to obtaining their educational dreams.
To effectively educate and train the next generation, it is important to provide critical programs like MI Reconnect and the Community College Guarantee scholarships. It is equally important to invest in community colleges directly. These investments are essential for these community-based institutions to eliminate barriers to education and provide students with the necessary educational tools needed for a pathway to sustainable careers. Community colleges are often the backbone of a community and an economic driver of educating the current and future workforce.
YES, there is a need for private scholarships!
References
Craft, Sandra, (2024, October 22). “Community College Statistics,” ThinkImpact. Retrieved from 2024 Community College Statistics – Data and Trends
EAB Blog. (2021, August 26). How community colleges attract major gifts. EAB. (Original work published October 16, 2019). Sources: Di Mento/Theis, Chronicle of Philanthropy, 7/18; Schwartz, EAB, accessed 8/23/19; Valbrun, Inside Higher Ed, 2/8/19; Whitford, Inside Higher Ed, 6/16/2021. Retrieved from How community colleges attract major gifts | EAB
Foley, Daniel; Milan, Lynn; Hamrick, Karen, (2021, January 27). “The Increasing Role of Community Colleges among Bachelor’s Degree Recipients: Findings from the 2019 National Survey of College Graduates, National Science Foundation, NCSES. Retrieved from The Increasing Role of Community Colleges among Bachelor’s Degree Recipients: Findings from the 2019 National Survey of College Graduates | NSF – National Science Foundation
Mills, Keetha, (2024, July 25). “Community Colleges: Making the Most of Philanthropy Dollars to Bring Equity to Higher Education, Inside Philanthropy. Retrieved from Community Colleges: Making the Most of Philanthropic Dollars to Bring Equity to Higher Education | Inside Philanthropy
Schneider, Bob, (2024). Despite New Scholarships, Michigan College Enrollment is Still Failing, Citizen’s Research Council of Michigan. Retrieved from Despite New Scholarships, Michigan College Enrollment is Still Falling – Citizens Research Council of Michigan
Whitford, Emma, (2022, February 16). “Charitable Gifts to Colleges Top $52 Billion,” Inside Higher Ed. Retrieved from Giving to colleges grew by 7 percent in fiscal 2021