College students struggling to pay their bills have another chance to borrow money from Georgia's new low-interest loan program.
The Georgia Student Finance Commission will accept a second round of applications for the Student Access Loan Program starting Sept. 23, officials told The Atlanta Journal-Constitution. The commission expects to award about $10 million.
The loans won't cover all costs, but can fill financial holes for those who exhausted other options. The bulk of loans awarded to new recipients will help with spring semester costs, but families can use the money toward current expenses, such as rent, said Tracy Ireland, director of the commission's post-secondary student and school services.
Georgia lawmakers set aside $20 million for the loan program when they overhauled the HOPE scholarship, cutting the award amount for recipients. The loans carry a 1 percent interest rate and the repayment term is 10 years after graduation.
The commission has awarded about half the money because fewer students than anticipated applied. Details were posted on the GAcollege411 website, which has information about financial aid and applying to college. The commission also worked with high school guidance counselors and college financial aid offices. Still, many families were unaware of the program or didn't hear about it until the original deadline passed, Ireland said.
"With everything going on today, we know there are families who could use this money and we plan to loan out every last dollar," Ireland said.
Tuition and fees for the 35-institution University System of Georgia increased by about 9 percent this year. Students who graduated from a public or private Georgia college in 2009 averaged $16,568 in debt, according to the national Project on Student Debt.
To be eligible for the loan, students must have applied for other aid, including federal and state loans, scholarships and grants. They must have graduated high school with at least a 2.5 GPA and maintain at least a 2.0 in college. HOPE requires at least a 3.0.
About 5,100 students from 95 colleges applied for the loan during the first round. Applications are still being processed but the schools receiving the most money so far are: Shorter University, Mercer University, Georgia Tech, Georgia Southern University and North Georgia College & State University.
A spokeswoman for Gov. Nathan Deal said he was encouraged by the mix of students from public and private colleges participating in the program.
Georgia Southern student Meredith Kratofil received a loan. She works and relies on HOPE and the federal Pell Grant, but the family was still worried about money, said her mother, Stephanie Kratofil.
"This money is a godsend," the mother said.
The average loan is about $7,700, Ireland said. If that holds for the second round of loans about 1,300 students would get money.
Students must re-apply for the loan annually.
Lawmakers have said they plan to fund the loan program again next year.
"It is programs such as this that help us to keep students in our schools, and move them towards college completion," Deal spokeswoman Stephanie Mayfield said.
Loan information
Georgia students can apply for the Student Access Loan Program starting Sept. 23. The loan carries a 1 percent interest rate and the maximum annual award is $10,000. The repayment term is 10 years after graduation, but the debt would be forgiven for those who teach math, science, technology or engineering in Georgia public schools. Applications and details can be found at gacollege411.org.
About the Author
