Investing in grants and scholarships reduces student loan debt

Grants and scholarships for students directly reduce the need to borrow for college. For students at 4-year colleges and universities in Michigan, both public and private, dollars put into grants and scholarships have played a central role in reducing student loan debt.

Students who take loans (about 41% as of 2024 in Michigan) have decreased their annual student loan amount by about $800 in recent years. Also in this timeframe, state investments in grants and scholarships including the Michigan Tuition Grant, Tuition Incentive Program, and the most important Michigan Achievement Scholarship have been essential drivers to reducing student debt. In fact, the average increase in grants per student was about $645 compared to the $800 decline in debt. Grants and scholarships reduce student loans.