A major money issue: Nearly $11 billion of Georgia student loans in default

Many of the students who will be returning to Georgia’s campuses this month are only able to afford school with the help of federal student loans.

In this edition of the AJC On Campus Roundup, the number of Georgians struggling to pay them back has skyrocketed.

Roughly 9.5 million Americans — 1 in 5 federal student loan borrowers — are in default, according to recent federal data. An Associated Press analysis found that includes 23% of Georgia’s borrowers, or 396,000 people.

Defaults occur when borrowers are more than nine months behind on their payments. They can ruin credit scores and allow the federal government to garnish wages or withhold tax refunds.

But those consequences were largely off the table during a three-year pandemic payment pause and a one-year “on-ramp” period that followed.

That grace period ended in the fall of 2024, and by the summer of 2025, borrowers fell into default for the first time in years. Since the end of the pause, the number of Georgia borrowers who are more than 360 days delinquent has grown by 191,000, according to the AP. In Georgia alone, the defaulted balance equates to nearly $11 billion, ranking only behind Texas, California, Florida and New York. The Peach State ranks third in the nation for student average loan debt per borrower, at about $43,800.

Experts say there’s many reasons for the default surge. Many borrowers have become confused about their loan status following the yearslong pause and former President Joe Biden’s push for loan forgiveness. Adding to the confusion was a string of federal lawsuits, one of which led to the elimination of the SAVE plan, the most affordable loan payment option that enrolled more than 7 million borrowers.

Sarah Sattelmeyer, a loan expert with the left-leaning think tank New America, worries that another wave of defaults could be coming as more borrowers have to transition from the recently eliminated SAVE plan.

“This has extremely significant financial consequences,” she said. “There really needs to be a tremendous effort made to try to get as many people out of default as possible.”

A federal website advises that borrowers not yet in default contact their loan servicers to make sure they are current on their payments. Those who are more than 270 days late on their payment can apply to consolidate their loans. For payments more than 360 days past due, borrowers should complete a repayment agreement or a nine-payment rehabilitation agreement, according to the website.

‘Call to action’ for universities

The cost of college, and the serious debt many take on to attend, has contributed to a public distrust of higher education, according to an April report from Yale University.

U.S. Secretary of Education Linda McMahon cited the report in a letter earlier this month. Addressed to university presidents and governing boards, the letter began by saying that, for centuries, American universities advanced scientific research, grew the economy and became a source of national pride.

“Yet, as higher education has drifted from the principles that built up so much public esteem, Americans’ trust in universities has reached record lows,” McMahon wrote.

She laid out a list of questions for universities to address, including on their cost, admissions processes, and free speech. “These statements of principle should be posted prominently on institutional websites,” she wrote.

In response, the Association of Public & Land-grant Universities wrote that while it appreciated McMahon affirming the “vital role higher education plays in communities across the country,” the schools already work to meet the objectives outlined in her letter.

“We look forward to learning more from the Department of Education about this effort and collaborating to advance shared goals,” wrote the APLU.

Education Secretary Linda McMahon speaks at President Donald Trump’s rally at Wheeler High School in Marietta on July 22, 2026. (Arvin Temkar/AJC)

Job hunts underway

Two of the largest positions within the University System of Georgia are up for grabs.

In July, the USG Board of Regents announced that it had named members of the Georgia Tech presidential search committee. Current GT president Ángel Cabrera, who has led the school since 2019, made a surprise announcement this June that he’s leaving in November for the nonprofit Aspen Institute.

It closely aligns with the retirement of USG Chancellor Sonny Perdue, who is set to retire in January. The chancellor search website went live in July and the USG held three public listening sessions with stakeholders later that month and in early August.

Applicants who apply by Aug. 10 will be given priority consideration, according to the USG.

University System of Georgia Chancellor Sonny Perdue will retire from his post in January 2027. (Arvin Temkar/AJC)

GT eliminates essay requirement

Speaking of Georgia Tech, it will stop requiring applicants submit a supplemental essay starting next year. The Atlanta school says the decision is meant to simplify the application process for families.

Georgia Tech quarterbacks practice during the first day of football drills at Rose Bowl Field and the Mary and John Brock Football Practice Facility, Monday, Aug. 3, 2026, in Atlanta. (Miguel Martinez/AJC)

“This change is not intended to make our review process less rigorous, only less complex,” Mary Tipton Woolley, executive director of undergraduate admission, said in a media release.

According to the school, it determined the essay “was no longer a meaningful differentiator in admissions decisions.” The decision follows in the footsteps of the universities of Georgia, Virginia and North Carolina-Chapel Hill.

Last year GT had nearly 68,000 applications for first-year admission, a record high.

Atlanta Technical College’s home run

Atlanta Technical College is scheduled Tuesday to celebrate the start of the renovation and expansion of the Henry Louis “Hank” Aaron Academic Complex. The project is being funded through a nearly $30 million appropriation, the largest single state funding investment in the college’s 60-year history.

The renovation and expansion will include a Center for Artificial Intelligence and Advanced Manufacturing, a Center for Film and Media Production and an expanded student services center.

“My husband believed deeply in the power of education and creating opportunities for others,” Billye Aaron said of her late husband in a statement. “It is especially meaningful to see this building continue to bear Hank’s name while preparing students for careers that will shape the future. This renovation and expansion will ensure his legacy will continue inspiring young people to dream bigger and work harder to achieve more.”

New SCAD major

This fall, the Savannah College of Art and Design will offer a bachelor’s in music production.

“Atlanta has long been a driving force in American music, propelling genres from early gospel and country through hip-hop, Southern rock and R&B, into new creative frontiers,” said Karl Rouse, associate dean of SCAD’s school of film and acting. “This new degree program expands on this legacy and builds an innovative path for SCAD graduates to continue to lead and shape this evolving industry around the world.”

The major, along with a new vocal performance degree, will be placed in the university’s School of Film and Acting.

Donation for Chattahoochee

Ten technical and community colleges were recently selected for investments from the Lowe’s Foundation, and Chattahoochee Technical College made the list.

The Marietta school received $750,000 via a Lowe’s Gable Grant, part of the foundations effort to train 250,000 tradespeople by 2035.