By Rep. Julie Harhart (R-Lehigh/Northampton) 

Many Pennsylvania families have taken a financial hit during the past couple of years due to the economy and job loss, which means the need for students to get financial aid to attend college is more important than ever. 

Unfortunately, families are not the only ones struggling financially; the Commonwealth has failed to reach revenue estimates for 22 consecutive months, which has a huge impact on the amount of money available for the state budget. This, in turn, affects how much funding the state can allot to the various agencies and programs that rely on state appropriations for their budgets. 

The Pennsylvania Higher Education Assistance Agency (PHEAA) is one of those affected agencies. More students than ever before are expected to apply for financial assistance through the PHEAA, and yet funding from the state budget appropriated for the agency is expected to be level funded. This places PHEAA in a difficult position and may require a decrease in the dollar amount of grants given. 

For the 2009-10 fiscal year, PHEAA received a 1 percent cut in funding, which resulted in a decrease of approximately $4.2 million for the agency, from $407.4 million to $403.6 million. However, it was still able to provide $4,120 as the maximum grant award per student for the current year. 

Unfortunately, if PHEAA is again left without an increase in funding this year, the agency has said that it will likely need to reduce the maximum grant award to $3,807, a 7.8 percent decrease, in order to meet student demand for financial assistance. 

The number of applicants requesting state grants is expected to increase by 6 percent in 2010-11, for a total of 180,000 students. 

The good news is that PHEAA is not planning to deny qualified students grant funding, only lower the amount per student awarded. This is an approach that will still provide each applicant with a sizable amount of financial assistance.  

Of course, PHEAA is just one example of the many agencies, programs and services that have been affected by budget constraints in recent years.  

This is just the start of the budget process for 2010-11 and the General Assembly and the administration will continue to look for ways to increase revenue, without raising taxes, so that important programs like the State Grant Program can continue to thrive. 

In other news, PHEAA has had the distinction of being one of only four institutions in the nation chosen to service the country’s growing federal student loan portfolio. Under the new administration, the federal government is transitioning from offering two student loan programs, to just one – the Direct Loan (DL) Program. PHEAA, in this new position, will assist schools as they transition to the DL Program this summer so access to student loans is not interrupted. This selection confirms PHEAA’s excellence on a nationwide scale when it comes to managing and financing student loans. 

Furthermore, in an effort to usher in more transparency and open the board up to a more diverse talent pool, legislation will soon be introduced to reduce the number of legislators who sit on the board. The current number of 16 legislative appointments would be reduced to 12, with the four then open slots replaced with private-sector individuals with backgrounds in a field related to higher education finance. 

I think this is an excellent idea that will serve to increase the board’s ability to remain on the cutting edge of its field. 

For more information on PHEAA, visit my website at JulieHarhart.com and click on “PHEAA.” 

Rep. Julie Harhart
183rd District
Pennsylvania House of Representatives
(610) 502-2701
(610) 760-9805
(717) 772-5398
www.JulieHarhart.com
Contact:  Tricia Lehman
House Republican Public Relations
(717) 772-9840
www.pahousegop.com