FEDERAL PROGRAMS

Federal Financial Aid

Federal Academic Competitiveness Grant - This grant can provide up to $750 for the first year of undergraduate study and up to $1,300 for the second year of undergraduate study.

National Smart (Science & Mathematics Access to Retain Talent) Grant - A National SMART Grant will provide up to $4,000 for each of the third and fourth years of undergraduate study to full-time students.

Federal Supplemental Educational Opportunity Grants -A student can receive between $100 and $4,000 a year depending on financial need.

Federal Pell Grants -The maximum award for the 2006-07 award year (July 1, 2006, to June 30, 2007) is $4,050.

State Financial Aid

Georgia Hope Scholarship - At public colleges, the HOPE Scholarship provides full tuition, approved mandatory fees (such as health and student activity fees), and a $300 per academic year book allowance. Room and board expenses are not covered.

Georgia Tuition Equalization Grant - Student must be enrolled in an eligible private college or university. Recipients receive an award of $300 per quarter or $450 per semester and can receive payment for up to four quarters or three semesters per year.

Georgia Hero (Helping Educate Reservists and their Offspring) Program - Provides assistance to members of the Georgia National Guard and U.S. Military Reservists. The award may be up to $2,000 per year.

Governor’s Scholarship Program - An award of $900 per year may be given to top students in the state of Georgia.

Federal Tax Incentives for Education

Hope Credit -For 2006, the maximum Hope credit has increased to $1,650.

Lifetime Learning Credit - You may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses.

Tuition and Fees Deduction - The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000.

Student Loan Interest Deduction - You can reduce your income subject to tax by $2,500.

Exclusion of interest on Education Savings Bonds - When you cash in certain savings bonds under an education savings bond program, you may be able to exclude interest from income.

IRS 2006 Updates

State Tax Incentives for Education

Georgia State Income Tax Deduction - Contributions to the Georgia Higher Education Savings Plan may be deductible from Georgia taxable income up to a maximum of $2,000 a year per beneficiary.