Associate-degree expansion could cost $18M to $20M a year
Four Michigan public universities that have for decades granted associate degrees and skills certificates are asking state lawmakers for a place in the Community College Guarantee, the state’s free-tuition program for students at two-year colleges. Northern Michigan University, Lake Superior State University and Michigan Technological University, all in the Upper Peninsula, and Ferris State University, in rural west Michigan, are the only ones of the state’s 15 public universities to offer associate degrees. Their leaders say the state should not discriminate where students go to college when awarding scholarships.
A high school graduate in the Upper Peninsula may consider enrolling at a community college, but the drive across the vast, rural region — a several-hour roundtrip commute, depending on where they live — can be enough to stop them. Ferris State, about a two-hour roundtrip drive from the nearest community college, has offered associate degrees and certificates in addition to bachelor’s degrees since the early 1950s. In 2024, 1 in 20 associate degrees awarded in Michigan came from the four universities.
“We all exist in what I call ‘community college deserts,’” Ferris President Bill Pink said. “Our students don’t get a chance to take advantage of the (Community College Guarantee). That’s not fair.”
Some say expanding the program would be costly. Annual tuition for 30 credit hours at universities costs about three times what it costs at community colleges, according to state House Fiscal Agency reports. While exact figures are unknown, the tally could reach $18 million to $20 million per year if the state paid full tuition for all associate-path students at the four universities. “It would be very expensive,” said Brandy Johnson, president of the Michigan Community College Association.
The universities’ lobbying effort comes as the state works toward a goal of arming 60% of its residents with a postsecondary credential by 2030. About 52% of residents now hold one, and the state is not on track to meet the goal, Ryan Fewins-Bliss, executive director of the Michigan College Access Network, said during Bridge Michigan’s Issues Summit last week.
The issue has been brewing since the Growing Michigan Together Council — convened by Gov. Gretchen Whitmer to identify strategies to address the state’s stagnant population — recommended two years of free college for all residents in 2023. Pink, who co-chaired the council’s subcommittee on higher education, said the recommendation did not distinguish between institution types. “The way we wrote it, it didn’t matter whether it was a two-year or a four-year institution,” Pink said. “Our regional state universities have such a good track record of students who complete their (college degree), and stay in Michigan.”
Pink said one of his top priorities after next week’s elections is expanding the scholarship program, and he said he has spoken with lawmakers who thought the guarantee already extended to Ferris, NMU, LSSU and Michigan Tech. Ferris officials recently held a meeting with state Rep. Tom Kunse, R-Clare, who has not introduced legislation but said the expansion makes sense to support students in rural communities. Kunse represents the county where Ferris State is located and earned his bachelor’s degree from Michigan Tech. “There is a desert here for community colleges … and in the UP,” Kunse said. “We should eliminate the geographic barriers of attending community college.”
Michigan began offering the Community College Guarantee in fall 2024, providing free tuition and fees for students living in the community college district and a reduced cost for students living outside the district. It is part of the Michigan Achievement Scholarship, a state scholarship first offered in 2023 to students attending four-year institutions with up to $5,500 annually. Of the 153,924 students awarded nearly $558.9 million in state scholarships in 2024-25, almost $46.6 million went to 20,007 students through the guarantee, according to the State Scholarships and Grants Annual Report. It is a last-dollar scholarship that covers leftover costs after federal financial aid and other scholarships, and the average award was $2,327.
Johnson said expanding the scholarship to four-year schools would be more expensive because tuition at the universities that offer associate degrees is the same rate for students seeking a four-year degree. NMU President Chris Olsen said exact costs are unknown because “we don’t know how many students who are out there who would like to take advantage of this but can’t because they are not allowed to.”
Fewins-Bliss suggested a possible compromise: four-year universities could discount tuition for associate degrees in exchange for access to the guarantee. “We don’t want to break the budget,” he said. “But if the four-years are willing to discount their programs to get access to the Community College Guarantee, I think that’s a fair tradeoff.”
Proponents say an expansion would benefit not only students but the communities around the universities. Marquette, where NMU is located, has an aging population, and local properties are being bought by people who want a second home or no longer have school-age children, said Zack Sedgwick, superintendent of Marquette Area Public Schools. “As much as we can keep our workforce and our future workforce talent in Marquette, the better,” Sedgwick said. “And that starts, in many respects, with the university. With the aging population, we need younger people as nurses, law enforcement, construction and plumbers. It’s a concern not just with education, but with our community as a whole.”
Sarah Dixon, president and CEO of the Big Rapids Regional Chamber, said not all students feel ready to earn a bachelor’s degree. Free tuition for an associate degree at the four-year institutions is “critically important” for offering careers to students in rural communities and keeping them in the region, she said. “In order to keep our current businesses here, we need to support them with workforce and talent,” Dixon said.
In 2024, 5% of the 21,353 associate degrees granted in Michigan were awarded by Ferris, NMU, LSSU and Michigan Tech, federal data shows. Ferris awarded the most, 750, followed by the 245 associate degrees granted by NMU, 158 by LSSU and 16 by Michigan Tech. Among the 31 community and tribal colleges and the four public universities, Ferris ranks 12th, just behind Wayne County Community College District, which awarded 875. In the Upper Peninsula, NMU, LSSU and Michigan Tech collectively awarded 419 associate degrees in 2024 — nearly the same as the combined 429 awarded by Bay College (236), Gogebic Community College (123), Bay Mills Community College (60) and Keweenaw Bay Ojibwa Community College (10).
Daniel Hurley, CEO of the Michigan Association of State Universities, called any new or expanded state financial aid program that increases access to Michigan’s public universities “a strategic move,” especially for the four universities. “Those institutions have historically served, given their geography and location, a community college mission,” Hurley said. The effort comes as postsecondary enrollment declined at most colleges and universities, and a preliminary report last week showed most universities’ enrollment fell from last fall to this fall, with LSSU, NMU and Ferris hit especially hard. University officials say the push is not about declining enrollment. “Ferris State, and the other universities offering associate degrees, are working to ensure local students have the same access to a quality education as those students living in areas with community colleges,” Ferris spokesman Dave Murray said.