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Read. Follow. Verify.Georgia Establishes Pay As You Earn Student Loan Program for Higher Education
Last action · January 29, 2025: House Second ReadersSponsors: Rick Jasperse and 5 others
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What This Bill Proposed
Georgia creates the Pay As You Earn Education Program, allowing eligible students at public and participating private institutions to finance their education through income-based repayment plans while requiring a $1,000 annual student contribution.
Establishes an alternative state-backed financing mechanism tying student loan repayment obligations to 15 years of future earnings at 3 percent of adjusted gross income, while offering participating private colleges tax credits and providing students a state taxable income deduction for loan repayments.
- The Georgia Student Finance Authority administers state scholarship, grant, and loan programs for residents attending eligible postsecondary institutions. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Georgia students
Students may finance postsecondary education through income-based loans requiring an annual $1,000 payment and subsequent 15-year income-based repayment.
University System of Georgia institutions
Public institutions are mandated to participate in the loan program and provide remaining funds for student cost of attendance.
Participating private eligible postsecondary institutions
Private institutions may elect to participate and receive a $1,000 tax credit for each participating student.
Key Facts
- All public eligible postsecondary institutions in Georgia must participate in the Pay As You Earn Education Program, while private eligible institutions may elect to participate.
- Participating students are required to pay $1,000 each year toward their cost of attendance, with the institution providing remaining funds based on future earnings.
- Repayment requires graduates to pay 3 percent of their federal annual adjusted gross income for a period of 15 years.
- Students may alternatively elect to repay the actual total loan amount plus 3 percent simple interest within 10 years of graduation.
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- Private institutions participating in the program receive a $1,000 tax credit per participating student, applicable to state income, sales, and property taxes.
- Loan repayments made by students are permitted deductions from federal adjusted gross income when computing Georgia taxable net income.
- Students must be U.S. citizens or eligible noncitizens, comply with Selective Service requirements, and not be in default on federal or state educational loans.
Frequently Asked Questions
How much do students have to pay upfront under the PAYE program?
What is the standard repayment structure after graduation?
Are private colleges required to participate?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · introduced in the House.
Procedural history
3 actions- Jan 29, 2025HouseHouse Second Readers
- Jan 28, 2025HouseIntroducedHouse First Readers
- Jan 27, 2025HouseIntroducedHouse Hopper
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 1 more sponsor
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Alternative Income-Based Student Financing
Introduces a state-administered direct loan model tied to post-graduation income rather than conventional fixed-schedule repayment.
Connected Entities
Sources
www.legis.ga.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 75)
- Controversy40Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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