The budget includes a $17.5 million increase for the Grants to Students Program. This is the state=s scholarship program which helps students pay tuition at any accredited college or university; however students who attend private schools, which charge higher tuition, generally qualify for more aid.

    The PHEAA Board annually determines the distribution of funds to applicants on criteria including family income, family size and the cost of the institution the student will be attending. This 7% increase will expand the number of full-time equivalent recipients by 1,710 to over 131,000 and will allow for an increase in the average award by $87, from $1,939 to $2,026.

    The budget also includes a $1.2 million increase for the Institutional Assistance Grants Program or a 3% increase. These funds assist independent, post-secondary institutions to stabilize education costs which benefits student grant recipients enrolled at those institutions. This increase will allow the per capita grant to increase from $984 in the current year to $1,019.

    The budget continues the phase-out of the Urban and Rural Loan Forgiveness Program by providing funding for renewal applicants only. PHEAA is accepting no new applicants to the program. While the Governor had recommended the elimination of the Agricultural Loan Forgiveness and the Child Care Loan Forgiveness programs, the Legislature added funds to continue them at a modest level.