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Universal FAFSA Challenge

People seated around a laptop showing the Federal Financial Aid website.

Universal FAFSA Challenge

The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) is excited to offer Universal FAFSA Challenge to support districts in adopting a local universal FAFSA policy and implementing FAFSA completion support in their high schools and local communities.

MiLEAP recognizes how critical it is for prospective college students to complete the Free Application for Federal Student Aid, or FAFSA. The FAFSA is needed to access federal scholarships and loans and is required for students to receive up to $27,500 through the Michigan Achievement Scholarship—including pathway to earn a skill certificate or associate degree tuition-free at their local community college through the Community College Guarantee. 

In the 2025-2026 school year, 61.3 percent of high school seniors completed the FAFSA. We can do better!

A dozen states across the country have adopted universal FAFSA completion policies with supports for students, families, and high schools. These policies require students to complete the FAFSA before high school graduation (while allowing for student exemptions in some circumstances). We’re seeing early evidence this strategy is working. Early adopters have seen increases in FAFSA completion, high school graduation, and college going. Learn more about other states’ policies from the National College Attainment Network.

Application deadline is December 1, 2026. Sign-Up for Email Updates

Eligibility

The Universal FAFSA Challenge is available to local educational agencies in Michigan including:

  • Local school districts (including community districts)
  • Public school academies
  • Were not a recipient of the Universal FAFSA Challenge Award in 2025 or 2026

To receive an award, districts must submit an application to MiLEAP certifying the district will:

  1. Require all students to complete the FAFSA to graduate from high school, except for the reasons provided in the Student Exemption section.
  2. Use funds received through the Universal FAFSA Challenge for participation in and implementation of activities that are known to drive FAFSA completion. Qualifying activities are provided in the FAFSA Completion Strategies section. 

Awards

The Legislature has appropriated $10 million for the Universal FAFSA Challenge. Qualifying districts will receive their share of this appropriation no later than January 31, 2027.

Awards will be calculated based on the total number of 12th grade students at qualifying districts. Each qualifying district will receive an equal amount per 12th grade student.

Note: In previous years, the per pupil award was capped. This year, there is not a cap. Award amounts per student will depend on the total 12th grade enrollment (as provided and verified by the Center for Educational Performance and Information) at qualifying districts.

2025 Awarded Districts 2026 Awarded Districts

Universal FAFSA Implementation

Establish a Universal FAFSA Policy

Districts must certify that they will update the district’s graduation requirements to include FAFSA completion—unless a student qualifies for an eligible exemption.

Allow for Eligible Student Exemptions

A school administrator of the student’s high school must demonstrate to the district board that good-faith efforts have been made to assist the student or the student’s parent/legal guardian in completing the FAFSA or obtaining a parental waiver.

A district shall exempt a student from the requirement to complete the FAFSA if any of the following are met:

  1. The student’s parent or legal guardian, or the student if the student is 18 years of age or older, is an emancipated minor, or is an unaccompanied youth, has submitted a parental waiver (obtained by a standard form provided by MiLEAP) to the district exempting the student from completing the FAFSA.
  2. The student is unable to complete the FAFSA because of privacy concerns.
  3. All of the following are met:
    • FAFSA Completion StrategiesQualifying districts must use their award on evidence-based strategies to improve FAFSA completion. MiLEAP has partnered with the Michigan College Access Network (MCAN), to share the following strategies and resources that are known to drive FAFSA completion rates.
    • After a good-faith effort, the student’s parent or legal guardian refuses to sign the parental waiver, is unresponsive, or cannot sign the parental waiver.
    • The student is unable to complete the FAFSA as an independent student.
    • The student agrees to opt out of completing the FAFSA.
    • Other than the requirements in subsection (2), the student is on track to graduate.

FAFSA Resources for Special Populations

Qualifying districts must use their award on evidence-based strategies to improve FAFSA completion. MiLEAP has partnered with the Michigan College Access Network (MCAN), to share the following strategies and resources that are known to drive FAFSA completion rates.

Important Dates

2026-2027

2025-2026

Application available: October 30, 2026 (this could change based on team review)


 Application Opens: November 1, 2025

Application Due Date: December 1, 2026

 Informational Webinar for Potential Applications: November 12, 2025

Qualifying Districts Notified: December 15, 2026

 Application Due Date: December 1, 2025

Budget Narrative Due: January 15, 2027


 Notification of Awards: December 12, 2025

Funds Received by: January 29, 2027


 Budget Narrative Due to MiLEAP: January 16, 2026
- Funds Issued to Qualifying Districts: January 30, 2026
- Proof of FAFSA Policy Due to MiLEAP: June 30, 2026
- Financial Reports Due: September 30, 2026
- District Written Report Due to MiLEAP: September 30, 2026
- Financial Reports Due: January 29, 2027
- Financial Reports Due: May 28, 2027

Additional Resources

Authority

MCL - Section 388.1667f - Michigan Legislature


The Michigan Department of Lifelong Education, Advancement, and Potential is not affiliated with National Merit Scholarship Corporation or its registered trademarks National Achievement®, Achievement Scholarship®, or Achievement Scholar®.