The official U-M statement is below.
The University’s policy regarding faculty/employee-student relationships defines the conflict of interest that arises when a faculty member/employee engages in a romantic or sexual relationship with a student and has the ability to influence the status or circumstances of the student through his or her professional responsibilities. When such a conflict of interest arises, the faculty member/employee is required to disclose the relationship to his or her supervisor so that a plan to resolve the potential for conflict can be developed. The policy strongly discourages such associations because they have the potential to pose risks to the faculty/employee, the student and third parties. It states the responsibility of all faculty/employees to avoid any apparent or actual conflict between their professional responsibilities and personal relationships with students. U-M faculty/employees are prohibited from making decisions and engaging in administrative actions for any student with whom the faculty member/employee is having a romantic and/or sexual relationship. In some cases, this prohibition extends to past relationships. The policy is intended to protect the integrity of professional relationships between faculty members/employees and students.