Tuition Incentive Plan or TIP

What is TIP?

The Tuition Incentive Program (TIP) was established in 1987 under the Annual Higher Education Appropriations Act as an incentive program that encourages eligible students to complete high school by providing tuition assistance for the first two years of college and beyond.

  • Students must be enrolled in courses leading to an associate degree or certificate. Certificate courses are defined as “at least a one-year training program that leads to a certificate (or other recognized educational credential), which prepares students for gainful employment in a recognized occupation.”
  • Students must meet a Medicaid eligibility history requirement. Eligible students must apply prior to high school graduation or GED completion (i.e., application example). The program targets students with financial need so students are encouraged to also complete the FAFSA.
  • Funds are appropriated annually in the Higher Education Appropriations Act. This program is administered by the Student Scholarships and Grants Division.

Information from MI Student Aid page


Where do I learn more and if I'm eligible for TIP?

The TIP fact sheet can be viewed at the right or linked here,  so you can learn about the application process and what schools accept TIP.

To contact information for the TIP hotline in the state of Michigan is:

1-888-4-GRANTS or (1-888-447-2687)

MI Student Aid Portal:



To determine if a student is eligible, click here for an explanation of what makes he/she TIP eligible


What are the basics of this program?

If you were on Medicaid in the state of Michigan for any 24 month time over a 36 month window, this program will pay for 12 credits each semester for your first 2 years of postsecondary education at the schools listed on the fact sheet; when enrolled in an Associates Degree Program, which can turn into a Bachelor's or more program of study.

Can TIP be used at private institutions?

Yes, private institutions listed on the fact sheet accept TIP to offset tuition for a portion of tuition.

If I'm TIP eligible, when do I have to sign up by?

Students and their parent(s)/guardian(s) may receive a letter well before students are ready to graduate; eligibility can be checked by contacting the Office of Student Scholarships and Grants above to determine eligibility.  Students then must complete the acceptance form before they graduate or complete their GED, typically completed on MI Student Aid Portal.  

I'm planning to pursue a bachelor's degree, will TIP work for me?

Yes, as long as the institution you plan to attend has an associates degree program; most schools have systems in place for you to utilize phase 1 of TIP during your first two years of successfully pursuing an associates degree which rolls right into phase 2 of TIP for your final two years of a 4-year program.