PHEAA is the agency that administered Pennsylvania's Federal Family Education Loan Program (FFELP). With the switch to the Direct Loan program, and their new contract to service these loans, PHEAA has created a separate entity- Federal Loan Servicing.
This contract allows PHEAA to continue offering their separate loan forgiveness plans.
The Pennsylvania Higher Education Assistance Agency had been the main lender for KeystoneBEST (FFELP) loans, but as of March 7, 2008 they suspended their loan operations and instead managed loans for other lenders in the program.
The PHEAA also paid the 1% federal default fee for KeystoneBEST (FFELP loan) borrowers, but this ended along with all FFELP loans on July 1, 2010.
At this time, FFELP borrowers have the opportunity to apply (at a slightly reduced rate) for Direct loans consolidation through June 30, 2012.
Pennsylvania does not have a separate state alternative loan program, although some Pennsylvania schools (like Penn State University) offer their own.
If you need alternative loans, you can compare lender offers using the form at the top, right. Also, consider credit union lenders when looking for additional loans.
Filling out your FAFSA for federal student aid or loans also allows you to apply for a free government grant:
The Pennsylvania State Grant Program
For students who are:
Pennsylvania residents
financially needy
enrolled for at least 6 credits
not in default on an education loan
The awards range from $350-$4,000 per year* based on income and on which educational institution the student is enrolled in. Most residents will qualify for some type of grant amount. There are students with family income of $99,000 receiving awards.
*PHEAA has donated an additional $50 million to the state grant fund. This will increase the maximum grant to $4,309. Also, the deadline for applying for this grant for the 2011-2012 school year has been extended to Aug. 1 for community college students, only.
Other Pennsylvania college grants and scholarships are:
Children Of Soldiers Declared POW/MIA
Pennsylvania National Guard Educational Assistance Program
The Postsecondary Education Gratuity Program- (for children of Pennsylvania police officers, firefighters, rescue or ambulance squad members, corrections facility employees or National Guard members who died in the line of duty after January 1, 1976)
Pennsylvania participates in these free federal grant programs:
Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) Scholarship- (must be eligible for a Pell Grant)
Chafee Education and Training Grant (ETG) Program- (for students aging out of foster care)
Robert C. Byrd Scholarship Program- (academic merit)
The state offers two scholarship programs (which are really student loan forgiveness programs) under the:
New Economy Technology Scholarship (NETS) Program
Technology Scholarships
for students enrolled in an approved science or technology program
awards up to $1,000 per year or 20% of outstanding balance (which ever is less)
must agree to work in Pennsylvania at the rate of one year for each year funds were received
broken agreement--> funds must be repaid with interest and penalties within 10 years
SciTech Scholarships
for students who are at least sophmores enrolled in an approved science or technology program
awards up to $3,000 per year
must complete an approved internship or relevant work experience in a field related to the student's major with a Pennsylvania company before graduation
must agree to work in Pennsylvania at the rate of one year for each year funds were received
broken agreement--> funds must be repaid with interest and penalties within 10 years
Agriculture Education Loan Forgiveness (AELF) Program- Although this is a state funded program, it only offers federal student loan forgiveness. Only FFELP loans taken out through PHEAA or AES, or Direct Loans are eligible.
There are three qualifying academic fields:
Veterinary Medicine
must be a Pennsylvania resident practicing veterinary medicine with a portion of your practice concentrated on the enhancement of agricultural health and productivity
repays loans at the rate of $2,000 per year up to a maximum of $10,000
Agriculture
must be a Pennsylvania resident and employed full time on a family farm
repays loans at the rate of $2,000 per year up to a maximum of $10,000
Teaching
must be a Pennsylvania resident teaching agriculture at a public or private Pennsylvania school
repays loans at the rate of $2,000 per year up to a maximum of $10,000
Another program for loan forgiveness is operated by the Pennsylvania Department of Health:
The Primary Health Care Practitioner Loan Repayment Program
Eligible disciplines:
Family Practice
Internal Medicine (General)
Pediatrics (General)
Obstetrics/Gynecology
Osteopathic General Practice (at least 2 years postgraduate training)
General Dentists
Certified Registered Nurse Practitioners (CRNPs) practicing in the above primary care specialties
Physician Assistants (PA-C) practicing in the above primary care specialties
Certified Nurse Midwives (CNM)
must serve in an area with a shortage of primary health care
minimum service committment is 3 years; maximum loan repayment for 4 years or more
maximum repayment amount is $64,000 for physicians; $40,000 for others
repaid at the rate of 15% (first year), 20% (second year), 30% (third year), 35% (fourth year)
all types of educational loans are eligible
money is paid directly to lender
service commitment breach--> funds that were repaid must be paid back at 300% within one year of the breach
The PHEAA has cut benefits as a result of the current lending crisis. In the past, more loan forgiveness programs were offered as well as better incentives for borrowers. Tuition relief in Pennsylvania has not kept pace with tuition hikes.
PHEAA (Pennsylvania Higher Education Assistance Agency 1200 North Seventh Street Harrisburg, PA 17102-1444 Phone: (717) 720-2800 Toll-Free: (800) 692-7392 Toll-Free Restrictions: PA residents only Fax: (717) 720-3914 TTY: (800) 654-5988