Pennsylvania Governor Rendell Says Policy Change Can Pump $11 Million Into College Student Grants

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April 26, 2007 -- HARRISBURG – Pennsylvania Governor Edward G. Rendell today announced that he has changed administration policy so that approximately $11 million the Pennsylvania Higher Education Assistance Agency, or PHEAA, would have spent next year on retiree employee benefits will fund student grants.

Based on updated calculations from his budget office, Governor Rendell said PHEAA is entitled to a downward adjustment in its annual contribution to the state program that provides health benefits for eligible state retirees. This adjustment is expected to save PHEAA about $11 million in the coming fiscal year, which begins July 1.

The Governor has urged the student loan agency to use all of the savings to increase the resources it sets aside from its annual earnings for scholarship grants to students.

The Governor said he remains committed to taking every action he possibly can to help increase available funding for student grants. Like the commonwealth, the Governor said he believes there are additional opportunities to cut expenses within the PHEAA operations.

Source: Pennsylvania Governor