The AggiE-Challenge, a multidisciplinary, project-based program, was created to develop student knowledge and skills for engineering design, lifelong learning, multidisciplinary teamwork, communications, ability to apply engineering fundamentals to problem solving, and appreciation for the impact of engineering on people. Distinctive features of the program include student engagement with a project associated with a grand challenge in engineering, undergraduate student teams with members from at least three engineering majors, active involvement by an engineering faculty member, and guidance by an engineering graduate mentor. Students receive course credit for their participation in AggiE-Challenge. Projects are designed for at least a full academic year to provide interested students in-depth opportunities to continue working on the same project for more than one semester. Faculty submit proposals to be considered for funding each year and selected proposals require faculty to recruit and mentor a student team with at least ten students and one graduate student who provides project management and technical support to the team. Since 2012, more than 100 engineering students have participated in the program each semester, with some continuing on the project for two semesters and a few for more than two semesters. This paper will focus on the program description, student demographics, impact on recruiting for graduate programs, and transferring this approach to industry-sponsored student team research projects.