(The Center Square) – A Senate committee studying college affordability is recommending lawmakers consider a need-based scholarship program in the 2026 General Assembly session.
Georgia and New Hampshire are the only two states that do not have a need-based program. The Georgia Lottery funds the HOPE Scholarship, but students must have a high school grade point average of 3.0 and maintain that in college. More than 2.3 million Georgians have received the scholarship since it began in 1993, according to Gov. Brian Kemp.
But Georgia residents have the second-highest student loan debt in the country, according to the Office of Policy and Legislative Analysis.
The Senate Study Committee on Higher Education Affordability said the HOPE Scholarship benefited families with higher incomes, according to 2018 data from the University System of Georgia.
“Among students from families with annual incomes above $100,000, 79% received support from HOPE. Alternatively, among students from families with annual incomes below $40,000, only 28% received support from HOPE,” the report said. “Ultimately, HOPE functions well for a merit-based postsecondary education financial aid program, but it does not achieve the same objectives as a broad need-based aid program, which is crucial to increasing access and completion.”
In 2018, state lawmakers included a provision in House Bill 787 that would create need-based scholarships. The bill also increased state funding to charter schools. But the General Assembly has yet to fund the scholarships, according to the committee report.
“The general design outlined in H.B. 787 is a good starting point and, of course, there is much to be learned from existing programs in other states,” the committee said in the report.
The report did not specifically say how much funding would be needed, but said it could come from an annual appropriation or endowment from the Georgia Education Lottery’s unrestricted reserves. The fund currently has $1.7 billion.
The scholarships should be administered through the Georgia Student Finance Commission, the report said.
The lack of a need-based scholarship program could affect Georgia’s workforce and economy, the committee said in its report.
“In the past, need-based financial aid sometimes has been cast negatively as a social welfare program,” the report said. “Whatever views are held on this matter, the reality is that without a need-based financial aid program, Georgia is leaving potential economic growth on the table and shortchanging its citizens.”
Lawmakers will consider the recommendations when the 2026 session begins in January.
