October 21, 2007

Pheaa Board Approves Cuts in Some Student-Aid Programs

Pennsylvania’s student-loan agency, under fire recently for spending on executive bonuses, posh travel expenses, and parties for employees, has decided to make some cuts — in programs that benefit students, The Patriot-News reported.

According to the Harrisburg, Pa., newspaper, the board of the Pennsylvania Higher Education Assistance Agency, or Pheaa, voted on Friday to accept a list of recommendations to reduce its spending on financial-aid programs in the 2008-9 fiscal year by a projected 58 percent, to $44.4-million. Those cuts would mean a drop in the number of students receiving grants, and less money for nursing students and educators, as well as adults in job-training programs.

James Preston, Pheaa’s interim president, told The Patriot-News that the reductions were needed because of recently enacted cuts in federal subsidies on student loans and financial market conditions.

State lawmakers and others were quick to denounce Pheaa’s action, which came on the heels of a scathing report by the state auditor’s office and after months of criticism for such practices as handing out $2.5-million in bonuses to 325 employees last year and spending more than $860,000 on seven vacation-like retreats for board members and executives and their guests since 2000. State Rep. Josh Shapiro said the board’s decision was “in part because they wasted money on incomprehensible excesses designed to serve the interests of high-level Pheaa executives rather than the students.”

A spokesman for Pheaa, Keith New, said that despite the financial uncertainties ahead, the agency would do its best “to ensure that every student receives the most aid possible.” —Charles Huckabee

Comments

1. PHEAA should be ashamed of themselves for having to reduce or cut programs of financial assistance. Pennsylvania is the 6th most populus state in the Union. Yet, we rank 2nd in students going on to postsecondary education. Our eligible students need the financial resources. In fact, it was PHEAA who caused the current climate of distrust with state lawmakers. Thus, they are unlikely to receive the additional resources needed to serve these students.

   PHEAA needs a state “Watch Dog.” The State Auditor general ain’t getting it done, or has been asleep at the wheel.

   Dr. E. D. Young

   — Dr. Eric D. Young    Oct 22, 10:53 AM    #

2. I second the issue said by the spokesman for PHEAA and the word voiced by one who has said that PHEAA will be ashamed because the students will not be able to have enough tuition ,money for laptop books etc.

   — Pete Godo    Oct 23, 10:00 AM    #

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