Wednesday, May 14, 2008
Students will receive less aid from the state-funded PHEAA program this year. The projections set the maximum amount of aid a student can receive at $4,000, down from $4,700 last year. PHEAA's funds are generated from a combination of state-grants and capital revenue. PHEAA receives $375 million in state grants this year, but because of the credit crunch and legislative changes in loan laws, PHEAA has no capital money to add to that figure. Agency Spokesman forPHEAA Keith New says as a state-funded organization he expects PHEAA to last for a long time, but as a generator of capital, PHEAA is subject to the effects of the market. This lack of capital comes a year after PHEAA was able to offer $61 million in capital funds.
Posted by wduqnews at 3:26 PM