"What (Michigan coaches) told me is that they're focusing on point guards right now, but if anything opens up, they'll definitely come back on and recruit me as hard as they were," said Towns
its potentially a non-issue. He could technically be accepted despite not passing the graduation exam. Its up to the school, because the certification from the exam is separate from his GPA and test scores. Being Michigan, thats probably not a possibility though.
Also, the test is 6 parts and from what I understand he had issues with just one part. I would agree this probably won't allow him to start summer classes, but he's got at least two chances to rectify this situation before August.