Spring Break
At a (lottery) loss: In this economy, is HOPE in danger?
BRITTANY COFER
Issue date: 4/14/09 Section: News
|
Twenty-five to 30 percent of lottery revenues go toward funding the HOPE Scholarship. But in tough economic times, when the state's residents are tightening their belts and not spending disposable income on lottery tickets, what will happen to HOPE?
"Right now we are dealing with tuition increases and the monies that are going into the HOPE reserves fund from the lottery," said Monet Robinson, communications specialist for the Georgia Student Finance Commission, in a phone interview Monday. "Eventually those lines are going to cross and so the legislature has passed [a House bill]."
Robinson said the House bill will cut the book allowance in half, to $150 annually, for all students receiving HOPE, with the exception of those receiving the Pell Grant.
"It's not immediate, but it's definitely coming," she said. "It may be taking effect in 2011."
Since its inception in 1993, the HOPE Scholarship has provided $2.9 billion in tuition assistance for almost half a million Georgia students - all funded by the state lottery.
"In 2008 we were able to give out $460 million worth of funds to over 200,000 students," Robinson said.
From 1993 to 2008 the number of HOPE recipients in the state increased 373 percent, from 42,797 to 202,494 recipients. The amount spent on HOPE has skyrocketed, from $21.4 million in awards in the 1993-94 academic year, to $460 million for the 2007-08 academic year.
The state lottery is one of the most successful in the country, with more than $960 million in reserve accounts. But the economy has prompted the legislature to look at cut backs in areas of HOPE allotments, such as the $300 annual book allowance.
Robinson said she has no concerns that HOPE will not make it through.
"[Students] are not going to lose HOPE," she said. "In the future there may be mandatory fees or the book allowance may go away, but tuition will be paid for."
But Robinson also suggested that students look at other financial aid options in addition to HOPE.
Be the first to comment on this story