ANN ARBOR—The University of Michigan will add $1.5 million to its pool of funding for need-based financial aid for Michigan students next year, with funding being provided by the athletics program using revenue from a new Big 10 media contract.

President Mary Sue Coleman said the $1.5 million will be applied to M-PACT, a financial aid program for Michigan residents that was created to increase the amount of aid students receive in the form of grants and reduce the amount of loans they need.

“The University of Michigan stands for excellence in the classroom and on the playing field,” Athletic Director Bill Martin said. “We’re pleased to be doing our part to make a U-M education affordable for more Michigan students.”

“Funding for financial aid is among our top priorities,” said Provost Teresa Sullivan. “The Athletic Department’s action reflects the campus-wide commitment to keeping the University affordable for Michigan students.”

U-M has been committed for many years to providing assistance to meet the full financial need of students who are residents of the state through a package of grants, loans and work-study. And the University is making concerted efforts to increase the grant portion of the aid. In addition to the creation of M-PACT in 2005, Coleman launched the President’s Challenge fundraising program in October 2006 to increase student scholarships.

The program so far has raised $12.2 million from donors for student scholarships, and Coleman has matched that amount with an additional $12.2 million from University resources, bringing the total increase in the scholarship pool to $24.4 million. Also, it has been a long standing policy to increase the University’s funding for financial aid each year by a percentage that exceeds any increase in tuition.

The U-M Board of Regents is slated to receive a presentation explaining these and other University student financial aid programs at its meeting Thursday.