AMERICUS — Georgia Southwestern State University (GSW) students receiving financial aid may not receive as much help soon because of more state budget cuts.
The Georgia Student Finance Authority (GSFA) will stop lending under the Federal Family Education Loan Program (FFELP,) which is the only student loan non-profit lender in the state.
In a press release, GSFA President Tim Connell said, “This decision was a very difficult one to arrive at, but the combination of pending federal legislation, a declining market for FFELP loans and a very adverse economic environment tells us this is the right thing to do.”
GSW’s Financial Aid Director Angela Bryant said when she was informed of this, she and her staff sent an e-mail to GSW students encouraging them to take immediate steps if they need more assistance. GSFA will suspend its lending services March 15.
Bryant said GSW will continue to use other means where necessary for the remainder of the school year.
“As a result,” Bryant said, “some students may have multiple lenders, but can choose to consolidate at a later date. The financial aid staff and I are striving to ensure that services will not be interrupted for our Georgia Southwestern students.”
South Georgia Technical College (SGTC) students won’t be affected because the school does not participate in state-funded student loan programs.
“The majority of our students — 89.2 percent — receive (the) HOPE grant or HOPE scholarship funds, and 61.1 percent receive the federal Pell Grant,” SGTC president Sparky Reeves said. “We have other student financial aid available through the Workforce Investment Act, the Federal Supplemental Education Opportunity Grant, the Federal Work Study Program and SGTC Foundation scholarships. Our students who qualify also receive funds from the Georgia Hero program, federal Academic Competitiveness Grants and the GI Bill.”
GSFA will be forced to lay off some staff, but will continue to service FFELP loans. The Georgia Higher Education Assistance Corporation will continue to guarantee the loans.
What makes GSFA different than for-profit lenders is that any profits made from its FFELP loans were returned to Georgia’s residents in the form of reduced cost loans, outreach and other services.
GSFA has provided more than $9 billion in financial aid since 1965, and has helped more than two million students attend college.
Local News
March 3, 2010
Finance authority will halt lending
Some GSW students to feel pinch
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