Two Michigan Universities Under Federal Investigation Over Alleged Scholarship Bias

Two Michigan universities are under federal investigation over how they award certain student scholarships, with questions raised about whether those programs unlawfully exclude applicants based on national origin.

Federal Investigation Targets Scholarship Eligibility at Michigan Universities

The University of Michigan and Western Michigan University are among five institutions nationwide being investigated by the U.S. Department of Education for possible violations of Title VI of the Civil Rights Act, which prohibits discrimination based on race, color, or national origin in programs that receive federal funding.

Scholarships Under Scrutiny: Who Is Eligible?

According to CBS Detroit, the investigation focuses on scholarships designated specifically for undocumented or DACA students, as well as others that limit eligibility based on race or ethnicity. Federal officials are looking to determine whether these restrictions unlawfully exclude U.S. citizens or residents from receiving financial aid, potentially violating civil rights protections.

At the University of Michigan, the spotlight is on the “Dreamer Scholarship,” which provides support exclusively to students with DACA status or undocumented immigration status. Western Michigan University is being investigated for its Undocumented/DACA Scholarship and the Elissa Gatlin Endowed Scholarship, the latter limited to African American, Native American, or Hispanic American students.

Both universities have acknowledged receiving formal notices from the Department of Education and said they will fully cooperate with federal investigators. Beyond that, officials at U-M and WMU have not made further comments.

Broader Federal Effort and Other Universities Involved

This inquiry is part of a broader federal effort scrutinizing how colleges and universities award scholarships, particularly those that may exclude applicants based on national origin or race. Similar investigations are underway at the University of Louisville, the University of Nebraska Omaha, and the University of Miami.

Education experts say the outcome could have significant implications for how institutions design their financial aid programs and approach diversity, equity, and inclusion initiatives.