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.