News writer
For three decades, Georgia’s Lottery has funded state education. This week, lottery education funding hit $30 billion cumulatively, a huge milestone for the state.
However, a new legislative report found that Georgia’s lottery-funded student scholarships aren’t serving enough students, thereby failing to deliver impact onto the state economy.
Legislators are arguing for a new system based on need.
HOPE scholarships fall short
Over the course of five months, Georgia’s Senate Study Committee on Higher Education Affordability has compiled a report based on testimony from students, parents, educators, and employers throughout the state.
The committee highlighted key failings in Georgia’s current lottery-funded HOPE scholarship system, which provides tuition aid for students attending private and public universities in the state.
Specifically, HOPE scholarships are granted based on merit, not need. In Georgia, only 1% of state grant aid is need-based, while nationwide, 74% of state grant aid was need-based in 2022 through 2023, according to the report. After Maryland, Georgians have the second-highest average student loan balance in the nation.
Many low-income, mainly minority and rural students, never qualify for HOPE as they’re statistically less likely to meet the GPA requirements. Low-income students who do qualify for HOPE must typically work while attending college in order to pay for non-covered expenses, such as housing, food, transportation, books, and living expenses. These working students often lose their HOPE scholarships when their grades slip.
State Senator Nan Orrock said that HOPE “no longer covers the actual cost of attending college, leaving students with thousands of dollars in unmet financial need.”
In the report, Orrock said that lottery holdings are generating interest worth about $113 million per year, and that these funds can be used for more needs-based efforts.
Economic impact
The report argues that Georgia’s lack of need-based programs has a ripple effect throughout the state economy.
Employers are forced to hire skilled workers from out of state, for example, due to a lack of skilled graduates who stay.
Georgia’s key industries account for 55% of the labor market, but only 43% of the state’s workers are qualified. This represents a 12% gap compared to the 10% gap estimated for the nation.
Needs-based lottery scholarship states
The report cites other states that use need-based models funded by the lottery.
In Florida, students are given scholarships based on their financial need, with eligibility at the time of enrollment. The state has raised $9.2 billion for its Bright Futures programs.
In North Carolina, the Next NC Scholarship reports that 94% of undergraduate programs have a positive return on investment.
“Social welfare” program
Analysis from the Georgia Budget & Policy Institute (GBPI) suggested that about $126 million in lottery funds could provide grants to nearly 98,000 students in the 2026–2027 academic year who might otherwise be shut out of college. Legislators in committee unanimously approved the recommendations from both sides of the political fence. However, the recommendations are not yet law.
The report addressed potential naysayers.
“In the past, need-based financial aid sometimes has been cast negatively as a social welfare program. 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,” reads the conclusion.
If legislators in this conservative state reframe their views of need-based grants, lottery reserve funds could spell a new era for college-bound Georgians.
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