Pa.'s Student Loan Agency Spent Lavishly on Promotional Giveaways

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Pa.'s Student Loan Agency Spent Lavishly on Promotional Giveaways

by Associated Press , November 7, 2007

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State Sen. Sean Logan, D-Allegheny, vice chairman of the PHEAA board, said the agency's promotional giveaways helped advertise it to students and clients in a competitive marketplace.

"There's one turnpike, one place to get a driver's license, one Department of Welfare, but there isn't just one place to get a student loan," Logan said. "PHEAA has to compete with some of the largest for-profit corporations."

PHEAA recently announced it expects to reduce the number of grants given to full-time students and for financial aid to adults taking job-training classes.

It blamed a new federal law governing student lenders and unsettled financial markets for a projected $44.4 million reduction in spending on the aid programs in 2008-09, down from $105.8 million this year.

Information from: The Patriot-News, http://www.pennlive.com/patriotnews

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