Students would be required to file their Free Application for Federal Student Aid, or FAFSA form, and after all other funding was exhausted, the scholarship would pay the remaining bill.

The program will be funded by community donations. After two years of operation, the program will qualify for state funds, provided by a tax capture. Using 2011 as a base year, half of the growth in the State Education Tax, which works as a property tax, can be used by the local Promise program rather than going to a fund to support the state’s schools, said Larry Steckelberg, the Promise Zone coordinator at the Michigan Department of Treasury.

The scholarship hopefully will begin with 2012 high school graduates, chairman Kellie Dean said.

Inspired by the Kalamazoo Promise, which began with 2006 graduates, Gov. Jennifer Granholm called for several statewide promise programs in her State of the State address in February 2007. Legislation was introduced in October, and Granholm signed it into law in January 2009.

Lansing area was one of 10 statewide designated in April 2009 to begin developing the program. Lansing’s plan was the second approved.

“Promise Zones help Michigan achieve our two most important goals — diversifying our economy and doubling the number of college graduates in our state,” Granholm said in a statement announcing the selection of the 10 areas.

Funding better education for Lansing graduates hopefully will come back to the community in business and social redevelopment, Dean said.

Although not all graduates will choose MSU, hopefully many will, said MSU Trustee Joel Ferguson, who serves on the board of the Lansing Promise Zone.

“It’ll give (graduates) the pipeline to do what they choose to do with,” Ferguson said. “We’re here and we’re a world class university and hopefully they’ll choose to come here.”