After a scholarship program for Michigan colleges was eliminated last fall, few students believe a $4,000 tax credit program proposed by Gov. Jennifer Granholm will keep students in Michigan.

For University of Michigan student Brett Teslaa, the $4,000 is not much of an incentive to stick around for graduate school.

"I'm looking to get out of Michigan anyway," Teslaa said. "I don't think $4,000 would be enough to keep me here."

The program is estimated to cost $6.9 million by 2011 and more than $161 million by 2019.

Researchers who study student financial aid say a tax credit program would not increase the number of students going to college and it wouldn’t convince students to stay in Michigan.

"If the goal is to ease the sting of college costs or reward students for good academic performance, then the tax credit is a good solution," said Susan Dynarski, a professor of education and public policy. "If the goal is to get more students into college, the evidence indicates a tax credit won't do the job."
 
There is also concern that money from the tax credit program would disproportionately go to wealthier students because low-income students are less likely to enroll in college.
 
"If a tax credit is largely going to go to students from upper-middle or upper income families, then it's probably not going to have much impact on those students and their behavior after graduating from college," said Donald Heller, director of the Center for the Study of Higher Education at Pennsylvania State University.
 
The tax credits also will not get to students until long after their tuition had been paid. Students who cannot meet tuition demands up front will not be able to use the tax credit as a replacement for the lost Michigan Promise Scholarship.

Some students believe the $4,000 is still enough to interest students in staying in Michigan.
 
“It's still something. I think there are a lot of students who are interested in staying here anyway,” said Michigan State University sophomore Laura Klinger.

 
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