Not really. Some Michigan degrees are better than Harvard ones.
Harvard cost. http://https://college.harvard.edu/financial-aid/how-aid-works/cost-attendance
Michigan cost. (remember to take x2) http://www.ro.umich.edu/tuition/tuition-fees.php#fullterm
http://www.collegecalc.org/colleges/michigan/university-of-michigan-ann-arbor/
The only way it would be cheap like you think would be if he maintained residency in MI but he would be in Rockford for 2 years so I doubt he would.
Not really. Michigan is a fabulous undergrad ... but they are far more known for their graduate programs. People could point out Michigan's elite engineering program ... but Harvard / MIT students can take some classes on either campus, if they chose. Michigan's great, Harvard's networking is second to none. Michigan is not in the same ball park.
I don't know how hockey does it, but high drafted baseball players usually have a clause in their contract allowing for the teams to pay for a kid's college tuition. I would think it's similar.
Other things to consider. Harvard has a massive endowment. Their financial aid is second to none. Their "need basis" grants helps them in non revenue college athletics (shared scholarships). I have several friends who paid $3K to attend Harvard and "play" football. I'm sure there were leadership grants / need basis awards to supplement Harvard hockey players with partial scholarships.
Did you ever wonder why some high school baseball / hockey players choose college over the pros when their parents are working two jobs just to make ends meet? Most baseball / hockey ships are partial due to its limited number. It's called grants ... disguised as leadership awards, community scholarships, etc. The top athletic programs in the nation all have them.