By Sen. Jim Butterworth
A telling sign that summer is here, besides the almost unbearable heat, is that families and students are planning for the next year of college, some for the first time. In that light, I’d like to explain one of the key changes that were made to the HOPE Scholarship this past legislative session. Hopefully, these changes explained will help in your planning and make any financial burden you may feel, a little less daunting.
As you know, the HOPE Scholarship was decoupled from tuition, meaning that the amount of tuition HOPE covers may fluctuate yearly based on lottery revenue. This was done, quite simply, as a necessary business move. Since it will not be covering all of the tuition costs, the General Assembly worked to establish a low-interest loan program. For some this will mean a low (or no) interest loan. For others this will be a forgivable loan for those who get their certification to teach in a critical area (science, math, engineering, or technology). Each year of teaching will forgive one year of the loan. In short, this low interest loan program will give options to those who are trying to fund the secondary education.
The Student Access Loan Program began on June 20 and the Georgia State Financing Commission will take applications until July 15. Therefore, time is of the essence. This is for the 2011-2012 school year beginning Fall of 2011. This loan program is intended to be a last resort for students who are facing gaps in their financial planning. Applicants must have applied for other financial aid prior to applying for this loan.
The interest rate will not be higher than 1 percent and students are allowed to borrow up to $10,000 per year and $40,000 in their college lifetime. The loan funds may be used to cover any costs of student attendance and it’s important to remember that only interest payments will be required during enrollment.
To be eligible for this loan, students must be a Georgia resident with GPA of 2.5 from an accredited high school. Also, students must make Satisfactory Academic Progress according to the policy at the college or university where the student is enrolled. Recipients will be selected from the pool of eligible applicants.
It’s imperative to remember that the changes we made were necessary to ensure the vitality of the program. Just like a business scales back in a bad economy, we had to alter the fundamentals of the program to ensure future success. Gov. Deal, myself, and several other state leaders worked diligently throughout session to ensure the best possible solution for Georgia families and students was adopted. We established and funded loan programs for those who found the changes difficult to financially manage. I am proud of our work and now feel comfortable that even my youngest children will be able to participate in Gov. Miller’s legacy that gave Georgia an unbeatable competitive advantage in higher education.
For more information regarding the HOPE Scholarship and other financial aid opportunities, please visit Georgia411.com.
Sen. Jim Butterworth serves as chairman of the Higher Education Committee. He represents the 50th Senate District which includes Towns, Rabun, Habersham, Stephens, Banks, Franklin, and Hart counties along with a portion of White County. He can be reached by phone at 404.651.7738 or by email at jim.butterworth@senate.ga.gov.
COLUMN
For Immediate Release:
July 6, 2011
For Information Contact:
Natalie Dale, Director
Katie Wright, Deputy Director
katie.wright@senate.ga.gov
404.656.0028