Gov. Nathan Deal's plan to revamp HOPE calls for funding a low-interest loan program to aid students who need extra help affording college. But that program may not help many.
The governor and other lawmakers pledged to allocate $10 million for the program, but the money won't go far, said Tim Connell, president of the Georgia Student Finance Commission. The commission, which oversees HOPE, will administer the program.
While the maximum award to a student can be $10,000, Connell doubted many would be given at that level. The challenge will be to provide the maximum number of students with a meaningful level of support. If the loan program does $5,000 awards it would help 2,000 students, he noted.
"We fully expect demand to exceed the money we're given," Connell said. "We will be oversubscribed, so while this will help some students, it can't help everyone. This is a loan of last resort."
The program will provide a "gap stop" for those who may need extra assistance, said Rep. Doug Collins, R-Gainesville, sponsor of House Bill 326 to revamp HOPE. The loan program will enhance education and keep college accessible for everyone, Collins said.
"This is not HOPE, this is a needs-based loan at 1 percent," Collins said during hearings. "It provides the needed money for those who have a general need."
The HOPE bill, which already passed the House, is scheduled to go before the full Senate as early as Tuesday.
The bill cuts the value of the HOPE scholarship for all but the very brightest students and adds other restrictions to keep the cash-strapped program from going broke. The scholarship amount will be tied to lottery revenue, not tuition, and can vary annually. For this fall the award will cover 90 percent of current tuition rates, meaning it won't take into account the double-digit tuition hikes expected at some campuses.
The loan program is based on one lawmakers passed in 2008 but never funded. Lawmakers describe it as needs-based, but there are no specific references to income level requirements, Connell said.
Should student demand exceed the $10 million, the commission will use a scoring sheet to determine who gets the money, he said. Financial need could be one factor considered, he said. The commission has a board meeting in May and will likely approve the rules at that time so the first cycle of money can be awarded in July, he said.
Students are eligible if they graduate high school with at least a 2.5 GPA and maintain at least a 2.0 in college. HOPE requires students to have at least a 3.0.
The loans, which carry a 1 percent interest rate, would be forgiven for those who teach math, science, technology or engineering in Georgia public schools. One year of the loan will be forgiven for each year spent teaching.
Connell said he hoped to get $10 million every year for the program.
Collins said Republicans are open to ways to maintain the funds in the coming years. There are also plans to raising matching funds using private donations.
The loan has received high marks from leaders in both parties and from the University System of Georgia.
While students like the concept, they're reluctant to depend on it until lawmakers approve the $10 million allocation, said Ali Kamran, president of the student government association at Kennesaw State University.
Students are also confused over how much money they could get and instead have focused on jobs, scholarships or other loan programs, said Corey Boone, president of the student government association at Georgia Tech.
"What we need is for them to keep their promise and just give us the HOPE they promised," said Rose Dasher, a freshman at the University of Georgia. "We aren't looking for loans. We want our scholarship."
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