U Mich does have some merit scholarships that are not based on need. You just have to spend time doing research on their website:
Also look at the common data set. Students with no need don’t get much merit aid, on average. Section H2A shows that 952 first years who didn’t qualify for need based aid received merit aid. The average merit aid was $3,702 for 2020/21 class.
Have you run Michigan’s net price calculator?