In 1993 Georgia s HOPE Scholarship program was established. Funded by the state lottery, the program provides a financial incentive for high school students to earn a B average, continue their education after high school and maintain a B average in college. Eligible students receive a scholarship that pays for tuition and fees and includes a book allowance. The program also was intended to help middle-income families and is not based on their financial situation or ability to pay college costs. The first awards were given to students who entered colleges and universities in fall 1994.
Students have incentives to meet and maintain high standards in high school and college.
The scholarships encourage the best and brightest students to attend colleges in their home state. The scholarships help middle-income families. At the same time states were establishing these merit-based scholarships, the federal government and state governments were passing legislation to encourage parents to save more for college. States established prepaid tuition and college savings plans. Federal legislation, such as the HOPE Scholarship Tax Credit and the Lifetime Learning Tax Credit, established several income-tax breaks for students and families saving and paying for postsecondary education.