AICUP Message to Friends of Independent Higher Education
September 26, 2011
PHEAA Board Seeks Increase for Student Aid Funding in 2012-13
The Pennsylvania Higher Education Assistance Agency (PHEAA) Board voted unanimously last Thursday to support a 5% increase request to Governor Corbett for the PHEAA grant program for 2012-13. The Board also supported a 5% increase for the Institutional Assistance Grants (IAGs), Matching Funds, and Act 101. In this fiscal year state appropriations to the grant program were flat funded while IAGs were cut by 19%.
Under the Board’s proposal, the student grant program would receive an additional $19 million next year, bringing the total student aid appropriation to nearly $400 million if approved in the budget process. Governor Corbett will propose his budget for FY 2012-13 in February. The Corbett Administration recently released guidelines asking all agencies to submit requests with flat funding or to find additional resources within their own budgets to support new programs. Senator Jane Earll (R-Erie) chairs the PHEAA Needs Analysis Committee of the Board and supported the larger increases, stating that the Board should “advocate for Pennsylvania students of higher education.” She also discussed the struggle of families to meet college costs.
PHEAA is doing its part by adding $50 million from their business earnings to supplement the state grant program in the current year and expects to add the same amount in 2012-13. Under the able leadership of Chairman Rep. Bill Adolph (R-Delaware) and Jim Preston, PHEAA President and CEO, PHEAA earned nearly $143 million in the last year by servicing loans under a contract with the federal government among other business activities. The US Department of Education awarded only four servicing contracts for direct loans throughout the country. Chairman Adolph praised the PHEAA team for their hard work in attracting and sustaining this contract.
The maximum state grant this year is $4,348 with aid going to about 174,000 students. With additional aid next year, the agency may raise the maximum grant (purchasing power) or serve more students. One scenario given to the board by Christine Zuzack, the Vice President for State Grant program, is that the grant could actually decline to $4,254 while grant recipients increase to 190,000.
In another decision, the Executive Committee Chairman Senator Tommy Tomlinson (R-Bucks) announced plans to unfreeze the pay of 830 supervisors in PHEAA after 4 years, citing wage compression, low morale and recruitment issues. PHEAA President Jim Preston also announced that the agency will provide special consideration to grant applicants whose families’ finances were substantially altered by the recent flooding. These individuals must submit a “Casualty Loss Form,” which is available on PHEAA’s website at www.pheaa.org. There is no deadline for submission.
Did you know: The PHEAA board welcomed the President of Waynesburg University, Dr. Timothy Thyreen to the board at this meeting. Congratulations Tim.
AICUP Message to Friends of Independent Higher Education
September 26, 2011
PHEAA Board Seeks Increase for Student Aid Funding in 2012-13
The Pennsylvania Higher Education Assistance Agency (PHEAA) Board voted unanimously last Thursday to support a 5% increase request to Governor Corbett for the PHEAA grant program for 2012-13. The Board also supported a 5% increase for the Institutional Assistance Grants (IAGs), Matching Funds, and Act 101. In this fiscal year state appropriations to the grant program were flat funded while IAGs were cut by 19%.
Under the Board’s proposal, the student grant program would receive an additional $19 million next year, bringing the total student aid appropriation to nearly $400 million if approved in the budget process. Governor Corbett will propose his budget for FY 2012-13 in February. The Corbett Administration recently released guidelines asking all agencies to submit requests with flat funding or to find additional resources within their own budgets to support new programs. Senator Jane Earll (R-Erie) chairs the PHEAA Needs Analysis Committee of the Board and supported the larger increases, stating that the Board should “advocate for Pennsylvania students of higher education.” She also discussed the struggle of families to meet college costs.
PHEAA is doing its part by adding $50 million from their business earnings to supplement the state grant program in the current year and expects to add the same amount in 2012-13. Under the able leadership of Chairman Rep. Bill Adolph (R-Delaware) and Jim Preston, PHEAA President and CEO, PHEAA earned nearly $143 million in the last year by servicing loans under a contract with the federal government among other business activities. The US Department of Education awarded only four servicing contracts for direct loans throughout the country. Chairman Adolph praised the PHEAA team for their hard work in attracting and sustaining this contract.
The maximum state grant this year is $4,348 with aid going to about 174,000 students. With additional aid next year, the agency may raise the maximum grant (purchasing power) or serve more students. One scenario given to the board by Christine Zuzack, the Vice President for State Grant program, is that the grant could actually decline to $4,254 while grant recipients increase to 190,000.
In another decision, the Executive Committee Chairman Senator Tommy Tomlinson (R-Bucks) announced plans to unfreeze the pay of 830 supervisors in PHEAA after 4 years, citing wage compression, low morale and recruitment issues. PHEAA President Jim Preston also announced that the agency will provide special consideration to grant applicants whose families’ finances were substantially altered by the recent flooding. These individuals must submit a “Casualty Loss Form,” which is available on PHEAA’s website at www.pheaa.org. There is no deadline for submission.
Did you know: The PHEAA board welcomed the President of Waynesburg University, Dr. Timothy Thyreen to the board at this meeting. Congratulations Tim.