The Pennsylvania Higher Education Assistance Agency’s embattled president will step down at the end of the year, the nonprofit student-loan agency announced today. The president, Richard E. Willey, a former state lawmaker, has been in charge of agency since 2002.

News of Mr. Willey’s departure comes at a time when the agency, known as Pheaa, is under fire from state lawmakers and Pennsylvania’s governor over its lavish spending on retreats for the governing board and its six-figure bonuses to executives. Pheaa is also under investigation by the U.S. Education Department’s Office of Inspector General, which is trying to determine if the agency overcharged the federal government for subsidy payments on student loans. The department is expected to release the results of an audit soon.

Scott Miller, the agency’s chief lobbyist in Washington, said that Mr. Willey, who is about to turn 62, had been planning to retire soon. But he acknowledged that Mr. Willey’s departure may have been “hastened” by the agency’s difficulties.

“I don’t know if he would have made a different decision had the controversies not come along,” he said, “but no one can deny that it played a role.” —Kelly Field