Georgia officials thought as many as 15,000 college students would apply for a new low-interest loan. Instead, 5,181 students did, and officials said Monday that they may reopen the application cycle.
Lawmakers funded the Student Access Loan Program when they overhauled the HOPE scholarship, lowering the award amount for recipients. The new loans won't cover all college costs but could fill financial holes for families who have exhausted other options.
The state gave $20 million to the Georgia Student Finance Commission for the loan program. The commission, which also oversees HOPE, estimated the average award would be $3,500 and about 5,700 students would receive money. If estimates hold true, the commission will have about $1.8 million left after processing all applications. Should that happen, the commission will accept another round of applications.
"We don't want to have any money left," said Tracy Ireland, director of the commission's post-secondary student and school services. "We think more families need help."
Those who applied by Friday's deadline will know by early August whether they're getting a loan and how much it's worth. The loans carry a 1 percent interest rate, and the repayment term is 10 years after graduation.
Many families remain unaware of the program because it's so new, Ireland said. The commission reached out to colleges and high school guidance counselors to spread the word. Details were posted on the GAcollege411 website, which has information about financial aid and applying to college. Students who receive emails from the commission were sent one about the program.
Stephanie Kratofil applied for a loan for her daughter, who attends Georgia Southern University. Her daughter receives HOPE and the federal Pell Grant, and she found a job on campus. But all that won't cover everything.
"If she doesn't get that loan, we'll be up a creek without a paddle," Kratofil said.
Students from 95 colleges applied. Students from Georgia Southern requested the most money, according to the commission. Other top requests came from the University of Georgia, Georgia State University, Georgia Tech and the Savannah College of Art and Design.
Requests totaled $39 million, and a computer program will randomly select who receives the loan, Ireland said. Students will receive an email this week saying whether they are part of the first cohort selected by the computer, Ireland said.
If selected, the commission will forward a student's information to his or her college to confirm how much the student needs. The college will subtract other aid and the amount the family was expected to contribute, as determined by the Free Application for Federal Student Aid. The loan will equal the school-certified amount, which could be less than what a student requested, Ireland said. The maximum award will be $10,000.
The process will continue until all $20 million is spent. The loans will be paid to the college and can be used toward any part of a student's cost of attendance.
The loan will be forgiven for students who go on to teach math, science, technology or engineering in Georgia public schools. Each year spent teaching forgives one year.
Where to learn more
For more information about the Student Access Loan Program, go to GAcollege411.org.
HOPE changes
Lawmakers overhauled the HOPE scholarship to keep the lottery-funded program viable. The changes go into effect with fall semester and affect all recipients. The changes include:
- Only valedictorians, salutatorians and those who graduated from high school with at least a 3.7 GPA and a 26 ACT or 1200 SAT (math verbal) score will see HOPE cover all tuition at public colleges. They must maintain a 3.3 GPA to keep the full award.
- Students with at least a 3.0 GPA will still get HOPE, but the amount could vary annually. For the 2011-12 academic year, it will equal 90 percent of the 2010-11 academic year rates. A student at UGA will get $3,181.50 a semester.
- Students won't get money for books or fees.
- Maximum award for private college students drops from $4,000 to $3,600.
- Students have one opportunity to reclaim HOPE if their grades drop. They used to have unlimited chances.
For more information: GAcollege411.org.
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