Your morning jolt: A low-interest loan program to fill the coming HOPE gap?

This morning at Georgia State University, Gov. Nathan Deal will announce the most sweeping changes to the HOPE scholarship since the inception of the lottery-cash-for-college program.

“Decoupling” amounts granted by the scholarship from tuition increases is certain to be one of his recommendations.

That could leave a critical gap between the cost of college and what a student receives from HOPE.

The difference could be covered in a low- or no-interest loan program likely to be proposed this session, Senate Majority Leader Chip Rogers said Monday.

“There has been a lot of discussion of how we create a workable loan program for students,” Rogers said.

One suggestion has been to turn all HOPE awards into loans for first-year college students – “much like the home school students have to do now,” Rogers said at a weekly news conference.

He continued:

“I think that’s a great idea. It may be difficult to put that in place overnight, because that incorporates a lot of students and a lot of loans.

“A second, probably more workable solution at this point in time is a loan to take care of the difference – whether it’s that difference between tuition and the HOPE scholarship, or between [HOPE and] total costs of going to school — books and fees and things like that.

“I think we’ll probably see something along those lines – some sort of loan program. Very low interest – one percent or zero percent. And with that you can do a lot of things. You can encourage students who make above a 3.0 – you can encourage them by having their loans at zero interest percent. If you get a 1.5 maybe we charge you a little more interest.”

***
The pre-kindergarten side of the lottery program is likely to take a big hit in Gov. Nathan Deal’s plans. Advocates plan a noon rally today at the Capitol, to press for inclusion of all 150,000 4-year-olds who are eligible.

***
The Senate this week will take up a bill on zero-based budgeting – after voting earlier this session to override Gov. Sonny Perdue’s veto of a similar bill last year.

To no one’s surprise, Senate Majority Leader Chip Rogers also dismissed a House zero-based budgeting bill that advocates a return to a joint budget office for both the House and Senate. The Senate established its independent office after Republicans took control in 2002 – and the House was still in Democratic hands.

“The House budget office does a fantastic job. There’s no doubt about it,” Rogers said. “But so does the Senate budget office. It is worth its weight in gold. We have saved enormous amounts of money by having those two budget offices.”

***
On his first trip home to Atlanta after receiving the Presidential Medal of Freedom, U.S. Rep. John Lewis was greeted with a reception – that doubled as a birthday party. He turned 71 on Monday.

Here’s some wild video of the event posted on Youtube:

- By Jim Galloway, Political Insider

For instant updates, follow me on Twitter, or connect with me on Facebook.

78 comments Add your comment

Lenny

February 22nd, 2011
9:07 am

Why not just cut the Hope to reach sustainable levels and be done with it? So now the party of personal responsibility haters of the nanny state can’t buy beer in the grocery story on Sunday want to make sure students have loans available to make up the difference? Who will administer the loans and who will police it? Who will go out and recoup the money from students who don’t pay up when they default…and some will. Sound like just more government not less. What is it with them?

Southside Shawty

February 22nd, 2011
9:14 am

Lenny, one of their benefactors will be providing the loans. You know the routine.

fdfdf

February 22nd, 2011
9:14 am

more like what bank is even currently giving loans

Lenny

February 22nd, 2011
9:16 am

Thanks Southside. I thought of that I posted. I’m sure the entity will have relatives or close ties to lobbyists in the legislature.

Road Scholar

February 22nd, 2011
9:22 am

The 57 failed banks are probably providing the loans! And I bet they get another tax break!

Rickfli

February 22nd, 2011
9:23 am

Are we pretending that there is somehow no difference in a Grant, which was supposed to be supported by the Ga. Lottery, and a LOAN? This is not creative thinking people.

Full of Crap

February 22nd, 2011
9:24 am

Why not just make the lottery pay the amount to the fund that it is required to by the act when it was passed instead of fat bonuses for lottery officals.

Karem Doesn't Miss An Opportunity

February 22nd, 2011
9:26 am

to get that pretty face in the news, most notebly WSB. He obviously spends most of his time and energy in running for something. The city employees better watch out, cause he’s about to throw you under the bus, just like Wis.

catlady

February 22nd, 2011
9:32 am

How much more buracracy will that require? How much more oversight? WHO IS GOING TO PAY FOR THIS???!!!

what?

February 22nd, 2011
9:33 am

John Lewis is the Sonny Perdue of US Congressman. A placeholder / caretaker at best. I mean, the guy has a great history. But he’s done nothing in Congress and nothing to advance Atlanta’s interests.

catlady

February 22nd, 2011
9:35 am

Bad, bad idea.

Better for students to attend the college they can afford with the new HOPE. If they cannot work to make up the difference, or they cannot get a traditional student loan, then they should go to a lower-tier college until they can amass some extra.

We keep hearing,”Live within your means!” but someone wants to put the taxpayers on the hook, and help their bank!

Just say NO–another “good friend” ripoff of the taxpayers, who would be on the hook for the administration and collection of the loans!

catlady

February 22nd, 2011
9:37 am

Make pre-k available to all by double-sessioning it, thus opening it up to twice as many kids! Four year olds don’t need a full day program. This will prove whether it is babysitting or not!

TrishaDishaWarEagle

February 22nd, 2011
9:38 am

I have to laugh, hearing students say that they just couldn’t go to college if they had to pay 10% of their tuition costs. Its called a JOB, boys and girls..work a semester, go to school a semester..Its been done before.

P.S. After the somali pirates killed the hostages they had, there are reports the Navy took control of the yacht and “some” somali pirates were killed…some? some?? some???

I guess If I want subhuman 3rd world scum killed right, I have to Kill it myself

sunman613

February 22nd, 2011
9:40 am

I wonder how much of the previous Hope Scholarship Funds were used by undeserving students whose grades were “helped” along by APS teachers….Maybe the teachers involved in the test tampering scandal should be held financially responsible…

JP

February 22nd, 2011
9:54 am

I like the idea of the HOPE scholarship, but hate the idea of creating a cottage industry of lenders for folks who can’t meet the gap in funding. Maybe it will work. But something tells me this has the potential to be a huge cluster****

James

February 22nd, 2011
9:59 am

So we will get loan instead of scholarship? How about 2nd year, do we still get hope or loan?

[...] This post was mentioned on Twitter by Jim Galloway, lotterynewsinfo. lotterynewsinfo said: Your morning jolt: A low-interest loan program to fill the coming HOPE gap: Nathan Deal will announce the most s… http://bit.ly/h6FoJM [...]

deegee

February 22nd, 2011
10:05 am

What would preclude one from bearing arms when traveling by sea near the horn of Africa? How do these small vessels overtake an oil tanker? How can you not see them coming?

I wonder if the surviving pirates welcome the opportunity to come to the US and spend the rest of their miserable existence in a US jail. I suspect that might be a better fate than eking out an existence in the cesspool called Somalia.

TrishaDishaWarEagle

February 22nd, 2011
10:13 am

@sunman

Even 10 years ago when I graduated high school, out of state universities were highly suspect of GA applicants, due to HOPE grade inflation..but the AP tests separate the wheat from the chaff.

teacher

February 22nd, 2011
10:19 am

This is not an entitlement like these kids and their parents think.
It should not be incumbent upon the state to subsidize parents lack of planning on behalf of their kids. Trade in that car, phone and mess you bought your kids and start saving like our parents did.

left wing

February 22nd, 2011
10:25 am

Not sure why the Somali pirates are a topic of conversation for a blog about HOPE scholarships. Maybe I can’t read . . . .

The purpose of having a scholarship is to encourage our children to get a college degree, because we all benefit from that in the long run. College educated are less likely to be incarcerated, typically generate more income over their lifetime (which means more tax revenue), etc, etc.

And having HOPE makes it just a little easier, either for the kid paying his own way or for the parents sending their kids. I have 1 graduating this semester and 1 in 2 more years (both on HOPE).

So basically, we’re mortgaging our future so we can save money now. Really smart planning.

eatmotacos

February 22nd, 2011
10:26 am

TrishaDishaWarBagle

“I have to laugh, hearing students say that they just couldn’t go to college if they had to pay 10% of their tuition costs. Its called a JOB, boys and girls..work a semester, go to school a semester..Its been done before.”

Next time you are in a fast food joint, look around – the illegal aliens have taken all of the student’s jobs. They (fast food) used to be one of the largest employers of students – now they are one of the top anti-enforcement lobbiest, stuffing money in your favorite legislators’ pockets. BTW, what ever happened to the health departments screening of food service workers? Guess the lobbiest suceeded with that one, also.

ECS

February 22nd, 2011
10:30 am

@Trisha

You’re right, let’s just extend our stay at college by working one semester and going to school another, since the stress of college isn’t already enough. 8 years for a 4 year degree….brilliant idea. By the way, most college campuses have rules on who stays on campus and who commutes, which means that those who stay on campus are already at a disadvantage because HOPE doesn’t fund housing or meal plans. I’d love to see a college kid make $3500+ a semester by themselves to pay for LIVING expenses, not tuition. And in this job market, it’s not about whether or not you have a degree, it’s about whether or not you went to the best performing school in the state. Trust me, I’ve been there.

Marlboro Man

February 22nd, 2011
10:37 am

Just have a lottery for the scholarships, the full bill is paid to the winners.

J. Davis

February 22nd, 2011
10:38 am

What happened to working some while you are in college? What happened to mom and dad, or one or the other, helping to pay the tuition? Quite frankly, I don’t care how they do it as long as it is not coming out of my pocket. I educated my children free and clear, with a couple of loans, no grants, from K-5 through college without riding the back of government or other people. By the way, the couple of loans were repaid, not forfeited or put into bankruptacy.

left wing

February 22nd, 2011
10:43 am

J. Davis @ 10:38

Did you send your kids to a public or private college? Because if you sent them to a public one, then you were ‘riding the back of government or other people.’.

For the record, I put myself thru school (no scholarships and my parents couldn’t afford to). I worked multiple jobs to do it, and I’m sure my grades suffered as a result. College is a full time job on it’s own and I would much rather allow the kids to devote themselves to educating themselves and not have to worry about the money.

[...] This post was mentioned on Twitter by Samantha Davis, eTextPrep. eTextPrep said: #Ga Gov Deal to announce sweeping changes to HOPE scholarship today! http://bit.ly/g5W5eb OH NO! #education #college [...]

smitty

February 22nd, 2011
10:43 am

I worked and had student loans (unsubsidized) to get through college. It’s definitely achievable.

just wondering

February 22nd, 2011
10:45 am

Who can explain how the cost for tuition is determined? What is the relationship of HOPE revenues compared to the increases in tuition through the years? Also the relationship of the amount of 3.0 HS graduates before and after the HOPE program started? Anyone know?

[...] reported here, Governor Deal will be at Georgia State University this morning to announce proposed plans and [...]

GaBlue

February 22nd, 2011
10:54 am

Consider the source… A [purely hypothetical person] who graduated HS in Georgia 10 years ago and then attended Auburn had parents who could afford four solid years of pricey out-of-state tuition, and likely did not get into his or her preferred schools in this state, as HOPE has made the competition much more fierce for our top two choices. (Thirty years ago, out of state tuition there was about $700/quarter, with in-state rates available the second year.) Furthermore, such a person would likely not have college-age children now — if any — and would have zero understanding of what it takes from a parent (busting one’s hump to live in a zip code where the schools don’t suck, for example) to get their children accepted to a respected in-state public college or universtiy, a degree from which actually impresses a potential employer. As tuition rates have risen drastically everywhere, out-of-state and private rates are simply too high for many hard-working parents, and yes, decent jobs for teenagers are disappearing, especially in economically-depressed neighborhoods. HOPE has enabled kids who want to work hard in school the chance to do so, despite widespread economic woes, though I can see why the “ignorance is a virtue” crowd might not see the benefit.

Like I said, consider the source.

Light

February 22nd, 2011
10:56 am

I’m really disappointed if this is what HOPE will look like beginning this fall. It would make more sense to begin next fall to give college seniors a chance to adjust to the change. What if they currently do not have a 3.5, will a senior lose hope in their last year? That will also give students (and parents) a chance to adapt to the changes forthcoming; many have already budgeted for the 2011-12 school year. A 3.7 gpa seems pretty steep but it definitely will rule out a lot of students. My son has a 3.48 that he earned (no inflated grades) and took rigorous classes. I’m very proud of him and his accomplishments. I thought HOPE would be a great opportunity for him coming from a single parent home to pursue college without the student loans (that his Mom is still paying on). But I guess he’ll do what I did and he’ll be fine, loans and work but at least he’ll have his mom’s support while attending a Georgia university. Or he’ll go to Auburn since he’ll have to take out thousands in student loans to cover costs anyway…which is my preference with or without HOPE.

gadem

February 22nd, 2011
11:01 am

After reading the proposed cuts, I think Gov. Deal is doing the right thing. College is a privilege and not a right. Some of these kids are ill prepared for school and waste the money any way. Make them earn it…in all honesty, 90% is still too high for underachievers.

Southside Shawty

February 22nd, 2011
11:04 am

I bet Trisha walked two miles in the snow (one way), to get to school everyday. Nothing like a snarky kid telling adults what they need to do.

blah, blah

February 22nd, 2011
11:08 am

Although I find Trisha Disha a bit off putting, I find ECS to be a total whiner. College is not that stressful. And if you can’t afford to live off campus alone, you live with relatives, you pile four, five, or six to an apartment. You figure it out, or you don’t get your education. At the age of 42, I am still paying my student loans. I took out the loans because education was important to me, and I had to foot the bill myself. So I did it.

God, will someone please stop the entitlement fad. It gets old. So QUIT WHINING ECS, and get out there and get a job or a student loan. If you can’t handle this, you will be an epic failure in the real world.

TrishaDishaWarEagle

February 22nd, 2011
11:09 am

consider the source..a leftist(lets just say they like blue) who hasn’t saved for their kids education, and wants their kid to get a free ride from the poor black folks who stand at the quicki mart all day rubbing scratch offs and playing their dream based numbas.

And I did get accepted to GA Tech…who wants to go to a school with a ghetto based campus? Auburn was/continues to be a top 10 Engineering program. The regents continue to deny Jan Kemp U an engineering program..

the original and still the best John Galt

February 22nd, 2011
11:12 am

I worked my way through two college degrees, one of them from Auburn, without dime one from either the government or my parents. It can be done. However, that was back in the 70’s and 80’s, and I know it’s a lot more difficult to do today, especially since the cost of going to college has doubled and tripled in recent years.

Let’s talk also about how much the value of a college degree has been reduced by dumbing down the requirements, and by many colleges becoming indoctrination centers rather than schools. The inflation of what used to be called “normal schools” into “universities” today is also a factor. Come on, the chiropractor training school in Cobb County now calls itself a “university.” There are two universities in Britain, one in France, and 30 or 40 alleged “universities” in Georgia.

TrishaDishaWarEagle

February 22nd, 2011
11:12 am

@SSS

Nope my dad bought me a car :)

Next

backwards is the new forwards

February 22nd, 2011
11:13 am

@gadem You realize we’re talking about 3.0GPA is your underachiever. So you think Georgia should do away with hope and Pre-K programs? I hope you’re happy with that when all the ignorant stupid people rob you in the streets in about 15 years.

TrishaDishaWarEagle

February 22nd, 2011
11:17 am

EMAG, circuit design, Fourier series..grade inflation in GA high schools will not help you then..

Sociology, checkbook math, and the ever popular “periodicals and magazines” , your mileage may vary

backwards is the new forwards

February 22nd, 2011
11:18 am

@Trisha
It’s good to see the anonymity of the internet allows you to be openly racist. I’m glad you would rather hang with rednecks in Alabama then stay in a “ghetto based campus”. Atlanta doesn’t need you.

And one more thing, if you want to keep the black folks in the quicki mart and Atlanta ghetto, just keep cutting education in Georgia. By 2020 the state will be full of ignorant dumb degenerates to go with the ignorant smart ones like you.

TrishaDishaWarEagle

February 22nd, 2011
11:19 am

Kennesaw state.. a university called HOPE

deegee

February 22nd, 2011
11:20 am

“Creates the Zell Miller Scholarship. Students with at least a 3.7 GPA and 1200 SAT or 26 on ACT will get full tuition at public colleges and $4,000 to private colleges. Students will need to maintain a 3.5 to keep the scholarship.”

Isn’t this income redistribution? How many kids that meet this criteria have parents that play the lottery?

TrishaDishaWarEagle

February 22nd, 2011
11:21 am

@backwards..

The truth can;t be racist..just the truth. I do not fall for your extortion attempt that I either pay for ’round the clock nanny state for poor kids, or they will rob/rape/murder me in the future. Thats why I own a gun and practice at the gun range.

GaBlue

February 22nd, 2011
11:22 am

Of course Auburn is a fabulous choice! My point is that there are many kids in Georgia who simply cannot afford to leave the state, no matter how hard they or their parents work. (Unless you graduate HS in Alabama, you pay out of state rates all four years now.) As both a college graduate and the parent of a college student, I can tell you for certain that even in-state costs don’t begin to compare, even when adjusted for inflation. The “well I did it!” argument is like apples and oranges: You bought six apples in the 80’s; they must buy 600 oranges to get the same degree now.

TrishaDishaWarEagle

February 22nd, 2011
11:25 am

what part of 10% do you people not get? Deal is not telling kids to come up with full tuition..he is saying if you can’t keep a 3.7 you will pay 10%…anyone who can’t earn approx $400 a semester is a loser..and college will not likely help them.

TrishaDishaWarEagle

February 22nd, 2011
11:29 am

@catlady

You are 100% right..now that pre-k will pay for 4 hours instead of 6.5, we will hear the whines of “but now I need to find daycare!” haha

S

February 22nd, 2011
11:31 am

My Alma Mata, Michigan State U, current tuition is over 19K per semester if you stay on campus. That’s 6 times more than what I paid in the not so distant past-and this is a school founded in part on the principle of affordable education. I still had to pull loans to meet that meager tuition in comparison even though I worked full time in a professional capacity-meaning I made more than minimum wage. I stayed off campus because it was cheaper and it was a struggle to keep all that together.

I say that to say this. No McDonald’s job, as it has been suggested, is going to remotely come near the nearly 20K/semester required to attend-or the 80% or so left over after the pell grant-let’s just be real. For a low income kid going to that school it’s going to have to be scholarships, grants and loans to get him/her through-and this is not an ivy league school-U of M is even steeper.

Bottom line is that education is way more expensive than it needs to be and we’re setting ourselves up for catastrophe in the future if we don’t don’t get a handle on it-plain and simple.

Last Man Standing

February 22nd, 2011
11:35 am

TrishaDishaWarEagle:

Pay no attention to the barbs as the truth seems to always draw fire from the liberals. Keep telling it like it is!