Georgia families depending on the state’s lottery-funded scholarship to send their children to college will either have to find more money or hope their kids clear a higher bar for full tuition.
The popular HOPE scholarship will be shrinking for all but the state's brightest under reforms Gov. Nathan Deal will sign into law Tuesday.
House Bill 326, based on a Deal proposal, also eliminates money for books and fees and cuts other benefits to keep the lottery-funded program from going broke. Under the new rules, which go into effect this fall, many students and families will have a larger out-of-pocket expense for college.
Some students fear they may be priced out of college. They are applying for jobs and reconsidering double majors and study abroad because of the cost. Parents are reviewing their finances to see what more they can contribute. Some have encouraged their children to take easier high school classes to boost their grades to a 3.7 grade-point average to qualify for a new full-tuition scholarship.
Georgia State University freshman Myeia Bautista was the first person in her family to graduate from high school. Even with HOPE, she works and took out loans. She doesn't know how to pay for college with a smaller scholarship.
"I'm going to have to drop out," she said. "I may just transfer to a technical college. It's a lot cheaper, and I think I can afford that. But that's not my dream."
Deal acknowledged the changes may create financial hardships, but he said it's the only way to secure HOPE for future recipients. HOPE is funded by the Georgia Lottery, which has failed to produce enough revenue to keep up with rising enrollment and tuition.
Lawmakers have warned about the changes for months.
"We made tough, but necessary, decisions that will result in a long-term solution -- not a quick fix," said Sen. Majority Leader Chip Rogers, R-Woodstock. "The economy of our state, the future of Georgia businesses, communities and families depend on our ability to keep our best and brightest students in our state by offering them a great education and a way to pay for it."
Students with a 3.0 GPA will still receive money from HOPE, but the amount will be tied to lottery revenue, not tuition. For this coming fall, the amount will equal 90 percent of current rates and won't cover tuition increases. Students at Georgia State, Georgia Tech and the University of Georgia should expect $6,363 for two semesters. If tuition increases by 16 percent, as it did this year, the scholarship would cover 78 percent of the cost.
About 10 percent of HOPE recipients will qualify for a new full-tuition scholarship. To earn the Zell Miller Scholarship, students must be the high school valedictorian or salutatorian or graduate with at least a 3.7 GPA and a combined 1200 on the math and reading sections of the SAT.
Stephanie Kratofil's daughter attends North Gwinnett High School and has earned a 3.9. She just registered for junior-year classes, and Kratofil tried to sway her from taking a college-level Advanced Placement English course out of fear her grades would drop. Her daughter disagreed but did decide against taking a gifted math class.
"I hate having to think this way, but what if her grades drop and she doesn't get an A?" Kratofil said. "You want to push your child to succeed, but we also want to get that full scholarship."
Demetria Williams, president of the Georgia School Counselors Association and a counseling coordinator in Gwinnett County schools, expects counselors to field more questions from parents about other money that might be available.
Deal's proposal includes $10 million to offer low-interest loans to students who graduate from high school with at least a 2.5 GPA and maintain a 2.0 in college. The program is based on a bill that lawmakers passed in 2008 but never funded. That money won't go far. For example, it might provide $5,000 loans to 2,000 students.
Students are looking to stretch the HOPE dollar. Tahji Williams, a junior at Georgia State, wants to take summer classes because HOPE cuts won't start until the fall.
Senate Democrats were still arguing to make HOPE awards based on income even after Deal's proposals had cleared both chambers last week.
Kerwin Swint, a Kennesaw State University political science professor, said many people likely saw the changes coming, given the bad shape of state budgets across the country. Still, he said the public was assured that HOPE would be there.
"It is still a positive and something to be proud of when comparing Georgia to other states," Swint said. "But the worry on the part of most folks now is that the dragging economy and tight budgets will continue to eat away at it until it becomes negligible."
HOPE changes
Students will still receive a HOPE scholarship, but the award will look different this fall. The revamped HOPE:
- Ties the amount of the award to lottery revenue, not tuition, and will likely change every year. Students must maintain a 3.0 to keep the scholarship.
- Eliminates the $300 book award and cuts money for mandatory fees, which range from $62 to $435 a semester.
- Creates the Zell Miller Scholarship, which will cover full tuition for valedictorians, salutatorians and those who graduate from high school with at least a 3.7 GPA and a 26 ACT score or a combined 1200 SAT score on the math and critical reading sections. Students must maintain a 3.3 in college to keep the scholarship.
- Covers remedial classes in the Technical College System of Georgia, not the University System of Georgia.
- Requires for the first time that technical college students maintain a 3.0 to keep the award.
- Cuts the commission paid to lottery retailers from 7 percent to 6 percent.
- Limits bonuses paid to Georgia Lottery employees. It can't exceed 1 percent of the net increase over the prior year's deposit into education accounts. There can't be bonuses without a net increase in deposits.
- Requires high school students to take more rigorous courses to be eligible for HOPE. This starts with next fall's ninth-graders.
Source: House Bill 326.
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