On January 29, 2025, the Georgia House of Representatives introduced House Bill 130, a legislative proposal aimed at reforming student loan eligibility and tax deductions for educational expenses. This bill seeks to address significant barriers faced by students in accessing financial aid, particularly those who have encountered issues with federal or state loans.

One of the key provisions of House Bill 130 is the establishment of eligibility criteria for the Pay As You Earn (PAYE) loan program. Under this bill, students who have defaulted on federal Title IV or Georgia educational loans will be ineligible for future PAYE loans unless they have fully repaid their debts. Additionally, students who owe refunds on federal or state financial aid programs will also face similar restrictions. Notably, the bill includes a provision that affects students with felony convictions related to controlled substances, making them ineligible for loans until the completion of the next academic term following their conviction.

The bill also proposes amendments to the Georgia tax code, allowing for a new deduction related to educational expenses, which could ease the financial burden on students and families. This change aims to make higher education more accessible by providing some financial relief through tax benefits.

Debate surrounding House Bill 130 has highlighted concerns about its potential impact on marginalized students. Critics argue that the restrictions on loan eligibility could disproportionately affect those from lower-income backgrounds who may struggle with loan repayments or have criminal records stemming from past drug offenses. Supporters, however, contend that the bill is necessary to ensure responsible borrowing and to protect the integrity of state financial aid programs.

The implications of House Bill 130 extend beyond individual students; they touch on broader economic and social issues within Georgia. By tightening eligibility for financial aid, the bill could lead to a decrease in college enrollment rates, particularly among at-risk populations. Conversely, the proposed tax deduction may encourage more families to invest in education, potentially boosting the state's workforce in the long run.

As the bill moves through the legislative process, its outcomes will be closely monitored by educators, students, and community advocates alike. The discussions surrounding House Bill 130 reflect ongoing efforts to balance financial responsibility with the need for equitable access to education in Georgia.