Annual report 2012

About GSFC
With headquarters in Tucker, Georgia, the Georgia Student Finance Commission has 148 employees ready to meet and exceed the needs of students, families, colleges and universities through its wide array of products and services. For over 45 years, Georgians have turned to GSFC for scholarships, grants, student loans and education loan guarantee services. In 1993, GSFC began administering Georgia's HOPE Scholarship and Grant Program, which has become a national model for merit-based student financial aid. Nationally, for the twelfth consecutive year, GSFC is a leading provider of merit-based scholarships and grants for college students on the state level.

GSFC Mission
Our mission is to promote and increase access to education beyond high school for
Georgians.

GSFC Vision
Our vision is to be the premier provider of student financial aid
and educational services for Georgians.

GSFC Board of Commissioners

Vacant
First Congressional District

William R. "Billy" Jerles, Jr.
Eighth Congressional District

F. Faison Middleton, IV
Second Congressional District

Patricia A. Burd
Ninth Congressional District

J. Joseph Edwards
Third Congressional District

A. Middleton "Mid" Ramsey
Tenth Congressional District

Thomas E. Bowen
Fourth Congressional District

Donald D. Howard
Eleventh Congressional District

Laura Morgan
Fifth Congressional District

Roy Kilpatrick
Twelfth Congressional District

Vacant
Sixth Congressional District

John L. Cowherd
Thirteenth Congressional District

Vacant
Seventh Congressional District

Timothy A. Connell
President & Ex Officio Board Member

2082 East Exchange Place - Tucker, Georgia 30084 800.505.4732 - www.gsfc.org - www.GAcollege411.org

2012
Georgia Student Finance Commission
Annual Report

A Letter from the President
Fiscal Year 2012 was again marked with significant accomplishments and growth for the Georgia Student Finance Commission (GSFC). We continued our quest to provide as many Georgians as possible with the resources they need to pay for their college education. In addition, new student financial aid programs and expanded services were implemented that further support and enhance our mission across Georgia.
New initiatives launched in Fiscal Year 2012 include:
The Student Access Loan (SAL) Program. SAL provides low-interest loans to eligible students who, after exhausting all other financial aid, experience a gap in their college financing budget. Nearly $16 million was disbursed which helped approximately 2,700 students close the gap in their college financing budget.
The Realizing Educational Achievement Can Happen (REACH) Scholarship Program. REACH was introduced in February of this year by Governor Deal and is designed to provide promising but at-risk students the academic, social and financial support they need to graduate from high school, attend college and achieve postsecondary success. REACH is a privately-funded, needs-based program.
Through GSFC's growing loan servicing operation, we helped more borrowers (students) responsibly manage their student loan obligations. We stressed the importance of avoiding delinquency and default and assisted students in developing realistic repayment plans. Some of our achievements in this area include:
Increased third party Federal Family Education Loan (FFEL) Program servicing volume by more than 57 percent over FY 2011.
Added nearly $16 million in new SAL loans to the serviced loan portfolio.
These valuable programs and services are just a few examples of the exciting activities that took place at GSFC during FY 2012. These activities and more will continue into FY 2013 and beyond. We are proud of all our accomplishments and are eager to share them with you in our Annual Report.
In closing, I'd like to extend a sincere thank you to the GSFC Board of Commissioners, our employees and all of our partners for their hard work, dedication and ongoing support. We look forward to the future as we continue our mission to promote and increase access to education for all Georgians.
Sincerely,
Timothy A. Connell GSFC President

GAcollege411
The GAcollege411 website connects students and families to the essential resources and services they need to attend college. Not only are we committed to providing valuable information to help students plan, apply and pay for college, we are available every step of the way to make that process easier. Through the website, Georgia students can prepare for the SAT and ACT, learn about financial aid, explore careers, compare and apply to Georgia colleges, and learn about financial aid.
Through efforts during the year, GAcollege411 saw a dramatic increase in college applications submitted and site usage. Some leading indicators include:
229,452 admissions applications submitted through GAcollege411. Over 4.9 million site visits of 10 minutes or longer, an increase of more than a million from FY 2011.
836,056 GAcollege411 accounts created. GAcollege411.org continues to be the number one resource for Georgians who want to explore their options for careers and college.
Student Access Loan Program
The Student Access Loan (SAL) Program was fully-implemented this past fiscal year and disbursed almost $16 million in financial aid assistance. SAL is a low-interest loan designed to help students close the gap in their college financing budget once all other financial resources have been exhausted. Funded by the Georgia Lottery for Education, eligible students can borrow up to $10,000 per year for four years and have ten years to repay the loan. While in school, the interest rate is set at one percent and students are required to pay interest annually. Once the loan enters repayment, the interest is fixed at one, six or eight percent and is based on whether the borrower completed their program of study on time. Some recipients may be eligible to cancel all or a portion of the loan in exchange for participation in specific teaching or public service work programs.

Scholarships and Grants
On behalf of the state of Georgia, GSFC administers state and lottery-funded scholarships and grants, as well as privately and federally funded scholarships. This type of student financial aid, ranging from merit-based to need-based, is designed to assist students with the cost of education while in high school and beyond. Programs include:
Accel Georgia Military College Scholarship Georgia Public Safety Memorial Grant HERO Scholarship HOPE GED HOPE Grant HOPE Scholarship North Georgia College & State University ROTC Grant North Georgia College & State University Military Scholarship REACH Scholarship Scholarship for Engineering Education Zell Miller Scholarship
From 1993 through June 30, 2012, over 1.4 million Georgians have received one or more HOPE awards, totaling more than $6.5 billion.
Funded by the Georgia Lottery Corporation.

GSFC Fiscal Year 2012
How GSFC Helps Students Pay for College

HOPE Scholarships, Zell Miller Scholarships, HOPE GED and HOPE Grants
1 $530,417,780
2 Tuition Equalization Grants
3 $20,541,490
4
Student Access Loans
5 $15,981,619
6
Accel Program
$9,053,785

GSFC Uses of Funds for Fiscal Year 2012:
$581,093,464

Military Programs*
$3,994,340
Other Programs**
$1,104,450

* Millitary Programs include: Georgia Military College Scholarship, HERO Scholarship, North Georgia College & State University ROTC Grant and North Georgia College & State University Military Scholarship.
** Other Programs include: Scholarship for Engineering Education, John R. Justice Student Loan Repayment Program and Georgia Public Safety Memorial Grant.

Figures in chart represent disbursements during FY 2012. The information in this display is presented only to show the general nature of the Georgia Student Finance Commission's business and does not represent its financial position nor conform to generally accepted accounting principles.
HOPE Program

2011-2012 Academic Year in Detail

Program

Students

Awards (millions)

HOPE Scholarship Public Colleges*

91,827

$327.2

Private Colleges

12,705

$39.4

HOPE Grant

98,790

$92.2

HOPE GED

3,877

$1.9

Zell Miller Scholarship

Public Colleges*

10,808

$64.0

Private Colleges

1,528

$5.7

2011-2012 Totals**

211,325

$530.4

*University System of Georgia and Technical College System of Georgia schools.
**2011-2012 Totals for the HOPE Program are unduplicated. Students who received multiple awards and/or enrolled in more than one type of institution were only counted once.

FY2012 Scholarships & Grants Disbursed $530 million FY2011 Scholarships & Grants Disbursed $791 million

Additional Accomplishments
Provided outreach services to 96,000 Georgians through counselor and parent workshops, one-on-one counseling sessions, PROBE Fair participation, college fair participation, postsecondary school training and default prevention workshops.
Conducted 1,500 high school and middle school events/visits, 78 training sessions and 119 community events providing information about GAcollege411 and financial aid opportunities in Georgia.
Enabled 95% of Georgia high schools to verify GPAs through our Transcript Exchange system to determine HOPE and Zell Miller Scholarship eligibility.
Assisted almost 2,000 college-bound students complete and submit the Free Application for Federal Student Aid (FAFSA) which helps ensure financial limitations are not a barrier to achieving their postsecondary education goals.
Disbursed $174,379 to recipients of the John R. Justice Student Loan Repayment Program.
Disbursed $3,994,340 to recipients of the Military Programs including Georgia Military College State Service Scholarship Loan Program, North Georgia College & State University Military Scholarship Loan Program, North Georgia College & State University ROTC Grant and HERO Scholarships.
Rehabilitated $14,651,037 in defaulted loans through Georgia Higher Education Assistance Corporation (GHEAC), removing the negative impact of default on the credit history of more than 2,200 borrowers.
Continued to assist in the development of GA AWARDS (Georgia's Academic and Workforce Analysis and Research Data System), the statewide longitudinal database. GSFC's infrastructure for the data warehouse and initial data load are projected to be complete by December 2012.

Community Outreach
The biggest challenge for most students pursuing a higher education is preparation and funding. Thanks to our statewide outreach efforts at middle and high schools, colleges , churches and other community-based organizations, thousands of students and their families are more knowledgeable about the resources available right at their fingertips. Since July 1, 2011, GSFC has increased its presence across the state by conducting more than 1,500 events, and reaching over 96,000 individuals. A dedicated team of regional representatives provides this free service to help students expand their opportunities beyond high school.
GSFC offers financial aid counseling, workshops and training in a number of ways, to a variety of audiences.
Presentations to middle and high school students and parents. Workshops for high school and middle school guidance counselors to update their knowledge. Participation in college and career fairs. Workshops at community and faith-based centers. Default prevention and financial literacy information available online and presented to students. Individual counseling at GSFC offices.
FY2012 Outreach and Counseling 96,000 individuals FY2011 Outreach and Counseling 95,000 individuals