PHEAA ANNOUNCES DRAMATIC INCREASE TO STATE GRANT AWARDS

BETHLEHEM (MAY 2) – State Senator Lisa M. Boscola announced today that the Board of Directors for the Pennsylvania Higher Education Assistance Agency (PHEAA) has approved increases in the average grant and maximum grant award for qualified students.  The increases are due to the PHEAA Board accepting a revised awarding formula for the Pennsylvania State Grant Program.

The State Grant Program provides grants to eligible Pennsylvania residents who are in need of financial aid to attend a PHEAA-approved postsecondary school as undergraduate students.  The new awarding formula will provide State Grants to more than 166,000 students for the 2006-07 academic year with an unprecedented increase in funds, bringing the average award to $3,345 and the maximum award to $4,500.  During the 2005-06 academic year, the average grant award was $2,800 with a maximum award of $3,500.

“This dramatic increase in awards to our students is a direct result of PHEAA’s $72.5 million investment in additional grant funding,” Boscola said.  “The effectiveness of the State Grant Program has been decreasing over the past few years as tuition costs increase much faster than the rate of inflation – that is why I am pleased to announce this new awarding formula brings new life to this program for years to come.”

PHEAA’S supplement to the State Grant Program is intended to increase the awards to our students in order to reduce the future debt of Pennsylvania’s college students.  This supplement is free of any taxpayer dollars and follows last year’s contribution of $65 million made by PHEAA to the State Grant Program.

In addition to this year’s supplement, PHEAA uses its business earnings to administer the State Grant Program, at a cost of $15 million annually.  Their administration of the program, at no cost to taxpayers, ensures that every appropriated dollar goes directly to students and their families.

For more information on the Pennsylvania State Grant Program, please contact Senator Boscola’s office by calling (610)868-8667 or by visiting www.PHEAA.org.

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