GA HB1039

Establishes the "Pay As You Earn Education Program" (PAYE) under the Georgia Student Finance Authority, providing direct loans to Georgia resident students attending eligible public or participating private postsecondary institutions for associate, baccalaureate, or first professional degrees.

Requires participating students to pay $1,000 per year toward their cost of attendance, with the remaining balance (after HOPE scholarships, tuition equalization grants, and other scholarships are credited) structured as a loan repaid over 15 years at 3% of the graduate's federal annual adjusted gross income; alternatively, students may elect to repay the actual loan amount plus 3% simple interest within 10 years.

Mandates that all public eligible postsecondary institutions participate and that at least 1% of each institution's incoming freshman class be included in the program each year, with institutions able to enroll additional students beyond that minimum.

Provides a $1,000 annual tax credit per enrolled PAYE student to participating private institutions, applicable against state income, sales, and property taxes, and allows students to deduct PAYE loan repayments from their Georgia taxable net income.

Disqualifies students who are not U.S. citizens or eligible noncitizens, are in default on federal or state educational loans, have been convicted of a felony drug offense, are incarcerated, or have previously participated in the PAYE program at another institution.