Mich. Comp. Laws § 390.979

Sec. 9. The department shall promulgate rules prescribing the reports to be made by the applicants awarded state competitive scholarships or annual renewal scholarships and the eligible postsecondary institutions enrolling the applicants. Before payment of a state competitive scholarship or annual renewal scholarship is made to the applicant, the applicant shall certify in writing the name of the eligible postsecondary institution in which the applicant is enrolled and the applicant's intention to use the scholarship to pay for the tuition and fees to the eligible postsecondary institution. Prorated payments must be made at the beginning of each semester or term to the student or to the eligible postsecondary institution for credit to the student's account.