Can someone explain UMich's Preferred Admission?

A little stressed out here, guys. Looking at University of Michigan and came across something called 'preferred admission'. Can someone please explain what this means? How does this impact my application?

Preferred admission is a way for prospective students to indicate their interest in certain degree programs at the University of Michigan. Essentially, it allows you to apply directly to certain colleges or programs within the university while you're still a high school student. If you're accepted in this program, it acts like a guarantee - once you meet the necessary prerequisites and course requirements during your first years at U-M, you're granted admission into the program, and will have a secured spot in the college or program of your choice for junior and senior years.

For example, if you're interested in business, you could apply for preferred admission at the Ross School of Business. If you get in and meet their requirements with your freshman and sophomore courses, you're guaranteed a spot in their program for business starting junior year. However, if you do not perform up to their standards over the first two years, they can rescind the preferred admission offer.

Keep in mind, applying through preferred admission could be more competitive than the general admissions process. This is because these spots are limited and the programs offered for preferred admissions are usually very selective. You'll probably need a strong academic record paired with relevant extracurricular activities. Also, if not accepted through preferred admission, you could still be admitted to the university through regular admission. Always remember to review the detailed requirements for the program to which you're applying.