Posts

PHEAA Prepared to Bolster State Grant Program Again This Year

/in /by

The Pennsylvania Higher Education Assistance Agency is fiscally stable according to its president.   However, it’s contributions will not be enough to cover state funding cuts for college grant programs for the 2012-2013 academic year.

PHEAA has tentatively approved giving a 50 million dollar supplemental grant to the state grant program, as it did last year, thanks to earnings from servicing federal student loan programs.   

President James Preston told house appropriations committee chairman Bill Adolph that the supplemental grant would still not be enough to cover the loss of state funds for grants to college students.  He told the s committee  that the agency believes the average grant would  fall by $158  and the maximum grant would drop by $252.

Preston says PHEAA is servicing 106 billion dollars in federal student loan assets. The revenue earned by PHEAA helps cover its administrative costs.

Money From Higher Education Agency Will Boost State Grants

/in /by

Pennsylvania’s state grant program is getting a shot in  the arm from the agency that administers it.  The Pennsylvania Higher Education Assistance Agency has approved a $50 million public service contribution to the program. Along with the expected state appropriation, that’s raising the anticipated maximum state grant from $3,541 to $4,309 for the 2011-12 academic year. The supplement is funded entirely through the agency’s business earnings.

PHEAA spokesman Keith New says the agency has been doing a series of restructuring and cost-cutting initiatives, they’ve developed new business and they’ve been able to secure their financial position sufficiently to be able to provide the additional funding. Pennsylvania is now one of four official federal student loan servicers, enabling the agency to grow its business.

Representative William Adolph, PHEAA Board Chairman, says the agency has worked diligently to cut costs and boost productivity to ensure that its best able to serve the needs of Pennsylvania students and families struggling to afford higher education.

In addition to the supplemental funding for state grants, PHEAA has extended the deadline for community college students to file the annual State Grant application from May 1 to August 1 for non-renewal students. The extension is expected to provide awards to approximately 15,000 additional students.

The Governor’s proposed State Grant appropriation is $380.9 million. Once the Commonwealth budget is passed, final awards will be recalculated for all students.

PHEAA expects to award grants to 192,000 students for the next academic year.