MI HB5315

Appropriates $2,000,000 from state general fund for fiscal year ending September 30, 2015 to establish the SMART (Smarter Michigan and Retaining Talent) tuition pilot program, with intent for the program to continue at least 5 years using additional funding from private and public sources.

Selects 100 community college students and 100 public university students as participants who must be Michigan residents with adjusted gross income below $250,000; participants selected through random process if applications exceed 100 per category.

Requires participants to enter written agreements to repay the state 2% of adjusted gross income annually if attending community college or 4% if attending public university, beginning the first year of employment after graduation and continuing for 5-25 years depending on years of tuition assistance received.

Limits grants to weighted average tuition costs at each institution type, restricts awards to 3 consecutive years for community college students or 5 consecutive years for university students, and requires maintenance of 2.5 cumulative GPA after first year to remain eligible.

Establishes Financial Aid Restructuring Commission with 6 members (5 voting, 1 nonvoting state treasurer) to analyze annual department reports on program outcomes and make recommendations on long-term viability of similar financial aid programs.