For years, a prevailing story of American higher education has been told through a dispiriting lens: Costs are skyrocketing, and students are drowning in debt.
At the University of Michigan, however, a decade of data has turned that script on its head. Inflation-adjusted tuition is down, and more than 60% of local graduates are now entering the workforce entirely debt-free.
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When adjusted for inflation, undergraduate first-year tuition and fees for Michigan residents at U-M fell by 5%, or $946, between 2016 and 2026. In fiscal year 2025-26 dollars — meaning the figures are adjusted to reflect the same purchasing power — costs declined from $19,292 to $18,346, so that a U-M student who is a Michigan resident enrolling today pays less in terms of purchasing-power than a student who enrolled a decade ago.
“As a public institution, U-M is committed to providing a world-class education that is accessible and affordable for all students, with a focus on those from the state of Michigan,” said Tammie L. Durham Luis, assistant vice provost of enrollment management and executive director of financial aid.
“And because of that commitment, we are working closely with today’s students to ensure we are maximizing the financial aid available to them, which means students from Michigan are graduating with less debt.”
For Michigan residents who earn a bachelor’s degree, a growing number of students graduate without any debt at all. According to U-M financial aid records, for students who graduated last year, 36% of undergraduates graduated with debt. Ten years earlier, more than half the graduating class, 52%, owed money when they left the university and started their career. That’s a one-third reduction in the proportion of graduates burdened by loans.
Among those who graduate with debt, the average balance has shrunk significantly. In real dollars, the average amount a student owed fell from $32,499 to $22,161, a reduction of more than $10,000, or nearly 32%.
As part of its efforts to make a bachelor’s degree more affordable and reduce student debt for Michigan residents, U-M offers a wide range of financial aid opportunities, planning tools and guidance for prospective in-state students and their families.
While exploring financial aid options can sometimes feel complex or overwhelming, university officials encourage Michigan students and families to begin the process early and take advantage of the online resources available to better understand the cost of attending U-M and the financial assistance opportunities that may be available to them.
U-M offers aNet Price Calculator that provides families with a personalized estimate of financial aid eligibility and anticipated out-of-pocket costs. Families can also review sample financial aid packages through the university’s Family Profiles resource, which illustrates how students from different income levels and family circumstances can finance a U-M education.
In addition, qualifying Michigan residents with family incomes and assets of $125,000 or less may be eligible for support from the Go Blue Guarantee, which covers full undergraduate tuition and mandatory fees.
Students and families can learn more about financial aid options, scholarship opportunities and affordability programs through the Office of Financial Aid website, helping prospective in-state students better understand the costs and long-term value of a U-M degree before they apply.
