College Grant and Loan Agency Faces Challenges

There’s concern over the financial future of the Pennsylvania Higher Education Assistance Agency’s ability to provide college grants and loans.

Agency spokesman,Keith New says this year’s contribution is intact, but the same can’t be said for next year.

“This program for most of its existence was funded entirely by the Commonwealth and when we reached the pointy where we exceeded our operating expenses, we turned that as a dividend by to the Commonwealth, but as with any business operation, earnings can shift and change.”

The Pennsylvania Higher Education Assistance Agency’s
100-million-dollar contribution this year has been cut in half, with reserve funds covering the balance.