Preservation of the HOPE Scholarship Program

Joint House & Senate Study Committee

Tricia P. ChastainPresident

September 14, 2015

The Impact of HOPE: 1993 – 2015

2

1.7 Million Students

$7.7 Billion

HOPE Program Structure

3

HOPE Program

HOPE Scholarship Zell Miller Scholarship HOPE Grant Zell Miller

Grant HOPE GED Grant

Strategic Industries Workforce Development

Grant (SIWDG)

The Impact of HOPE Today

4

HOPE Scholarship, $365,921,309

Zell Miller Scholarship,$126,565,989

HOPE Grant, $54,926,598

Zell Miller Grant, $17,672,795

SIWDG, $8,913,484

HOPE Grant Programs,

$81,512,877

HOPE Scholarship and Grant Programs - FY2015*

*HOPE GED Grant, $806,498

2011 Reforms

5

2011 Reforms

• HOPE award amounts decoupled from tuition amounts and a standard award basis was established (Factor Rate)

• Book and fee payments eliminated• Seven year time limit on eligibility• Rigor requirements to begin with 2015 graduating class • Zell Miller Scholarship created

6

2011 Reforms & the Factor Rate

• FY 2011 – HOPE paid full tuition• 2011 Reforms – Factor Rate instituted• FY 2012 – Factor Rate set at 90 percent of what HOPE

had paid the previous year• FY 2013 – Factor Rate went to 100 percent; HOPE was

paying the same amount as it had the previous year• FY 2014 – 2016 – Governor has set the Factor Rate at

103 percent; HOPE award amount growing by three percent each year

7

HOPE Program Before & After 2011 Reforms

8

HOPE Program Before & After 2011 Reforms

9

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1994 1997 2000 2003 2006 2009 2012 2015

Num

ber o

f Stu

dent

s

Scholarship Students Grant Students

HOPE Scholarship and HOPE Grant(including Zell Miller)

HOPE Scholarship Students & DollarsBefore & After 2011 Reforms

10

HOPE Scholarship (including Zell Miller beginning 2012)

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1994 1997 2000 2003 2006 2009 2012 2015

Scho

lars

hip

Dolla

rs

Num

ber o

f Stu

dent

s

Students Dollars Awarded

HOPE & Zell Miller ScholarshipsAfter 2011 Reforms

11

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

0

20,000

40,000

60,000

80,000

100,000

120,000

Dolla

rs

Stud

ents

HOPE Students Zell Miller Students HOPE Dollars Zell Miller Dollars

FY2012 FY2015 FY2012 FY2015

HOPE & Zell Miller ScholarshipsStudents and Dollars Awarded at Public Institutions

HOPE Grant Students & DollarsBefore & After 2011 Reforms

12

HOPE Grant (including Zell Miller beginning 2015)

$0

$25,000,000

$50,000,000

$75,000,000

$100,000,000

$125,000,000

$150,000,000

$175,000,000

$200,000,000

$225,000,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1994 1997 2000 2003 2006 2009 2012 2015

Gra

nt D

olla

rs

Stud

ents

Students Dollars Awarded

HOPE Scholarship & Tuition

13

HOPE Award Growth vs. Tuition Growth

• When tuition increases at a higher rate than the Factor Rate, HOPE pays a smaller percent of tuition

14

6% Tuition Growth

3% HOPE Growth

HOPE Scholarship & Tuition

15

Average HOPE Scholarship and Tuition at Research Universities

$3,495.00

$4,526.50

$-

$1,000

$2,000

$3,000

$4,000

$5,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Dolla

rs

HOPE Tuition

Average FY2016 tuition not covered by HOPE: $1,032

HOPE Scholarship & Tuition

16

Average HOPE Scholarship and Tuition at Regional Universities

$2,280

$2,625

$-

$1,000

$2,000

$3,000

$4,000

$5,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Dolla

rs

HOPE Tuition

Average FY2016 tuition not covered by HOPE: $345

HOPE Scholarship & Tuition

17

Average HOPE Scholarship and Tuition at State Universities

$2,180

$2,508

$-

$1,000

$2,000

$3,000

$4,000

$5,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Dolla

rs

HOPE Tuition

Average FY2016 tuition not covered by HOPE: $329

HOPE Scholarship & Tuition

18

Average HOPE Scholarship and Tuition at State Colleges

$1,278

$1,473

$-

$1,000

$2,000

$3,000

$4,000

$5,000

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Dolla

rs

HOPE Tuition

Average FY2016 tuition not covered by HOPE: $196

HOPE GRANT, SIWDG & ZELL MILLER GRANT

HOPE Grant Program & Tuition

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HOPE Grant, SIWDG Award Amounts & Tuition

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HOPE Grant, SIWDG Award Amounts & Tuition at TCSG Institutions

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Dolla

rs

HOPE Grant HOPE Grant plus SIWDG Tuition

Zell Miller Grant, SIWDG Award Amounts & Tuition

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Zell Miller Grant, SIWDG Award Amounts & Tuition at TCSG Institutions

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

FY2015 FY2016

Dolla

rs

Zell Miller Grant Zell Miller Grant plus SIWDG Tuition

HOPE Grant Program Dollars

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HOPE Grant Program* Dollars

$92,981,669

$71,934,586 $73,024,623 $54,926,571

SIWDG, $4,756,739

$8,907,734

$17,662,681

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

FY2012 FY2013 FY2014 FY2015

Dolla

rs

HOPE Grant SIWDG Zell Miller Grant

* HOPE Grant Program includes HOPE Grant, SIWDG and Zell Miller Grant

FY2015 Total: $81,512,415

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OUR MISSIONTo promote and increase access to education

beyond high school for Georgians.

OUR VISIONTo be the premier provider of student financial

aid and educational services for Georgians.