PHEAA (Pennsylvania Higher Education Assistance Agency)

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.

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.

Be sure to check your Pennsylvania FAFSA deadline.

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)

New Economy Technology Scholarship (NETS) Program

1. 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
2. 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

Student Loan Forgiveness Programs

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:

1. 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
2. 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

3. 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