Students looking for information about a new one percent interest student loan won’t learn much from the University.

When students have questions about a loan, they contact the Office of Student Financial Aid, but in the case of the new Student Access Loan, financial aid officers are just as confused as students.

James Mooney, associate director of student financial aid, said the OSFA doesn’t know anything about the loan except the information that is posted on the Georgia Student Finance Commission’s website.

“They haven’t even finalized the regulations yet,” he said. “They always think things are going smoothly up there.”

The Student Access Loan is a one percent interest loan Even with the loan designed to help undergraduate students who have applied for every type of aid but still have a gap in college funding, GSFC calls it a “last resort” loan.

When students apply for the loan, they certify that they have filed FAFSA (Free Application for Federal Student Aid) paperwork and pursued every other type of scholarship or loan available to them with the exception of private loans.
Even if students receive scholarships or federal loans, they can still be eligible for the new loan, although there is a merit requirement. Students must have graduated from high school with a 2.5 GPA and maintain a 2.0 GPA while in college.

Student Access Loans will cover costs of up to $10,000 per year. Students can receive the loan for up to four years, although they must reapply each year.

Students are not required to pay back the loan while in college, but they must pay the annual interest of one percent. They must repay the loan within 10 years of graduating.

The one percent interest rate is lower than the interest rate of Perkins and Stafford loans several times over.

“The interest rate is set in law at one percent,” said Tracy Ireland, director of postsecondary student and school services at GSFC. “The only time the rate can change is when the borrower defaults. This is not a teaser rate.”
However, even though the interest rate is guaranteed, funding for the loan is not. Each year, the Georgia General Assembly will budget a different amount of money for the loan program. This is the first year since its creation in 2008 that the loan has been funded.

The state will forgive Student Access Loans for students who go on to teach science, engineering, math or technology in a Georgia public school. One year’s worth of SAL debt will be dismissed for each year of teaching.
Students who are eligible for the loan are not guaranteed funding. If the amount requested by all applicants exceeds the $10 million that the legislature budgeted for funding this year, awards will be determined at random by a computer.

“The lawmakers wanted every student to have an equal chance of getting awarded the loan,” Ireland said. “They were always thinking that they would have more applicants than they would have funding.”

To receive the loan, students must attend an institution that awards associate or bachelors degrees, but they are not required to seek a degree.

With the July 15 deadline quickly approaching, Mooney said the OSFA cannot market the loan to students without more details from GSFC.

“I think we’ve fielded some calls and told them to go to the link,” he said. “That’s all we can say right now.”