HB38: HB38 Education; needs based financial aid program; revise definition of eligible student

Georgia's needs based financial aid program (O.C.G.A. § 20-3-360) helps economically disadvantaged college students who have a financial aid gap. To qualify, a student must meet several conditions, including having completed a certain share of the credits required for their credential. This bill raises that threshold for students in four-year programs from 70 percent to 80 percent of required credits before they can be considered an eligible student; the 45 percent threshold for two-year program students stays the same. The bill also extends the program's automatic repeal date, which was set for June 30, 2025, to June 30, 2029, keeping the program in place for several more years. The changes take effect as soon as the Governor signs the bill or it otherwise becomes law without his signature.

• Raises the share of program credits a four-year program student must have completed to qualify for needs based aid, from 70 percent to 80 percent.
• Leaves the 45 percent completed-credit threshold unchanged for students in two-year programs.
• Extends the automatic repeal date of the needs based financial aid program (O.C.G.A. § 20-3-366) from June 30, 2025 to June 30, 2029.
• Keeps in place the other existing eligibility requirements, such as economic disadvantage, FAFSA completion, and academic standards set by the commission.

College students in Georgia who rely on the state's needs based financial aid program, particularly those in four-year degree programs who are closer to completing their credentials, as well as the state commission that administers the program and sets its eligibility standards.

Students in four-year programs would need to complete more of their coursework, 80 percent instead of 70 percent, before they can draw on this aid, which could shift when in their studies this help becomes available. Extending the repeal date to 2029 keeps the program operating for several more years instead of ending in 2025.

• Section 1 revises paragraph (1) of O.C.G.A. § 20-3-360, changing the four-year program credit-completion threshold for 'eligible student' from 70 percent to 80 percent.
• Section 1 leaves the two-year program threshold at 45 percent of required credits.
• Section 2 revises O.C.G.A. § 20-3-366 to move the program's automatic repeal date from June 30, 2025 to June 30, 2029.
• Section 3 sets the effective date as the date of the Governor's approval or the date the bill becomes law without his signature.
• Section 4 repeals any conflicting laws.

1. 2025-05-12Effective Date 2025-05-12
2. 2025-05-12Act 118
3. 2025-05-12House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-28Senate Passed/Adopted (Senate)
6. 2025-03-28Senate Third Read (Senate)
7. 2025-03-18Senate Read Second Time (Senate)
8. 2025-03-13Senate Committee Favorably Reported (Senate)

• Charles Martin (R, HD-049)Primary sponsor
• Matt Reeves (R, HD-099)
• Jan Jones (R, HD-047)
• Scott Hilton (R, HD-048)
• Deborah Silcox (R, HD-053)
• Max Burns (R, SD-023)

1. PassedHouse voteFebruary 19, 2025

   169 yea, 3 nay (5 not voting, 3 absent)

   Passage: House Vote #42

2. PassedSenate voteMarch 28, 2025

   46 yea, 5 nay (0 not voting, 5 absent)

   Passage: Senate Vote #315

• financial aid
• college affordability
• education funding
• Georgia colleges