A recently released report and implementation guide details how universities can use microgrants to ensure that low-income students nearing graduation have the opportunity to complete their degrees. Wayne State University is included as one of 10 model institutions successfully assisting these students.

"Foiling the Drop-Out Trap, Completion Grant Practices for Retaining and Graduating Students" examines the success of microgrant student aid programs at public urban research institutions, including programs currently operating at Wayne State University. The report was released by the Association of Public and Land-grant Universities and the Coalition of Urban Serving Universities.

For many students facing modest financial shortfalls, microgrants can make the difference between staying on the path toward graduation and dropping out. Microgrants are aimed at low-income students who are on track for graduation but at risk of dropping out due to small financial shortfalls.

The report details how these institutions' microgrant programs are transforming campus financial aid, advising and community engagement and producing positive benefits for students and their institutions. Many of the students targeted are low income, first generation and minorities. The results include higher retention and degree completion rates for academically solid students who could be thrown off track without the microgrants.  

Half of the institutions included in the report were motivated by new Pell Grant limits, which left students facing financial shortfalls or financial aid ineligibility as they neared graduation. The new Pell Grant limits often meant that the most needy students faced the specter of dropping out, lowering the institution's retention rate in the process.

This prompted institutions like Wayne State to not only offer support to students close to finishing their degree, but also to develop supplemental funding for Pell Grant recipients to encourage their degree completion in four years or less, before Pell Grant funding runs out.

Also highlighted in the report are two grants offered by Wayne State University: the Board of Governors (BOG) Completion Grant, and the WSU Promise Grant. For the 2015-16 aid year, the BOG Completion grant offers an average of $4,000 to needy students in their fifth year of study and a grant of $5,000 to needy students in their sixth year of study. To qualify, students must have earned enough credits to graduate within six years. Students must also have "skin in the game," which includes having borrowed loans at WSU.

The WSU Promise Grant is a front-end, four-year grant to help students with a portion of their tuition. The Promise Grant is given to first-year students with demonstrated financial need and expected family contribution as low as zero but no more than $8,000. Students must enroll full time and complete a minimum of 24 credit hours each year to maintain the award. Exceptions may be made for students who complete slightly fewer credits due to participation in remedial courses. The WSU Promise Grant offers an average of $3,000 the first two years and an average of $4,000 the third and fourth years.