Michigan bill would require filling out FAFSA or 'opt-out' form to graduate

• Lawmakers are considering a bill that would require students to fill out a free federal student aid form — or an ‘opt out’ form — to graduate
• The form is the first step in getting federal financial aid and state aid 
• Opponents say the bill could create undue burdens for schools and students

The Michigan high school class of 2028 and beyond would need to submit a federal college financial aid form or an “opt-out” form to graduate, under a bill passed by House Education Committee members Tuesday. 

Under a House substitute of Senate Bill 463, school districts would be required to provide information about the Free Application for Federal Student Aid, also known as the FAFSA, to students. 

High school seniors would be required to submit the form or their parents could sign a form with their local district saying they don’t want to. If neither happens by the time students are about to graduate, the school district can submit an administrative waiver that indicates they tried to reach the student at least twice and then a student can still graduate. 

Proponents of the bill say it will unlock doors and information on attending college or university, community college and some trade schools. Opponents say it’s unfair to make students fill out a form if they don’t plan to attend college.

Plus, some opponents say they are worried students will be unwilling to fill out the form or waiver in fear that it would lead to questions about their parents’ immigration status. 

Related:

• FAFSA is live for 2025: Five things to know about Michigan college costs
• Michigan is spending big to hire and retain teachers. Experts see positive signs
• Facing DEI scrutiny, University of Michigan abandons ‘diversity statements’ in hiring

Elinor Jordan of the Michigan Immigrant Rights Center, said many immigrant families are “terrified” and that sharing information with the federal government or even a high school counselor, “is so palpable that we know that high schoolers who are forced to choose between submitting the FAFSA or graduating, we are very confident that many will have to choose to give up their dream of graduation.” 

President-elect Donald Trump ran on a campaign largely focused on immigration and has vowed to have mass deportations of people who entered the United States illegally. 

Rep. Carol Glanville, D-Walker, who supports the bill, said she understands people have concerns, but there are mechanisms to ensure students don’t fail to graduate just because they don’t fill out the form. 

“We are not holding students back from graduation,” Glanville said. “There's no need for them to drop out…and I understand that the fear is hard to listen through. I truly understand that.”

Michigan wants to increase college attendance, completion 

Gov. Gretchen Whitmer has set a goal of having 60% of working-age adults in Michigan with a college degree or skills certificate by 2030. The state’s rate is currently 51.1%. 

The FAFSA is required for students to be eligible for federal grants, loans and work study.

It’s also a requirement to be eligible for the Michigan Achievement Scholarship, which provides up to $27,500 over five years to attend a public university or private college in the state. If a student wants to be considered for tuition-free community college through a state program, they must also fill out the FAFSA.

The bill was introduced in August 2023. Since then the federal government launched the FAFSA but students encountered errors and delays.

An estimated 43% of the Michigan high school class of 2024 completed the FAFSA by the end of June, according to the National College Attainment Network. That rate has grown since then to about 53%. 

After a tumultuous federal financial aid cycle, Michigan’s public universities enrolled fewer first-year students this fall than last but did not see as sharp a decline as schools nationwide. 

School districts can already encourage FAFSA completions

Local school districts and charter schools can already require FAFSA completion for high school graduation. 

State leaders allocated $10 million in the current education budget for school districts to implement these policies and pay for efforts to increase FAFSA completion. 

The Michigan Department of Lifelong Education, Advancement, and Potential anticipates distributing funds to districts no later than January 31, 2025. More than 70 school districts and charter schools have expressed interest in the initiative, according to MiLEAP. 

The next step for the bill would be a full House vote.