House Bill 130, introduced in the Georgia House of Representatives on January 29, 2025, aims to reform student loan repayment options for Georgia residents. The bill, sponsored by Representatives Jasperse, Evans, Powell, Wilkerson, Carpenter, and others, seeks to establish the Pay As You Earn Education Program, which would allow borrowers to repay their student loans based on their income levels.

The key provisions of House Bill 130 include the establishment of eligibility criteria for the program, as well as guidelines for loan calculation and repayment. The bill also proposes amendments to the state's tax code, specifically Code Section 48-7-27, to allow for a deduction related to student loan repayments. This dual approach aims to alleviate the financial burden on borrowers while providing a tax incentive to encourage timely repayment.

Debate surrounding the bill has highlighted concerns about its potential impact on state finances and the effectiveness of income-based repayment plans. Critics argue that such programs may lead to increased debt accumulation for students, while supporters emphasize the need for flexible repayment options in light of rising tuition costs and economic challenges faced by graduates.

The implications of House Bill 130 could be significant, particularly for low- and middle-income students who may struggle to meet traditional loan repayment schedules. By tying repayments to income, the bill aims to create a more manageable financial landscape for borrowers, potentially reducing default rates and promoting economic stability.

As the bill progresses through the legislative process, stakeholders, including educational institutions and financial aid advocates, are closely monitoring its developments. If passed, House Bill 130 could reshape the student loan landscape in Georgia, providing much-needed relief to borrowers and setting a precedent for similar initiatives in other states.