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Auditor General Calls PHEAA Spending Questionable
 

Thursday, October 4, 5:45 p.m.
By Josh Brogadir

The state auditor general is blasting one of the leading providers of financial loans and grants for college students.

The Pennsylvania Higher Education Assistance Agency, or PHEAA, is accused of using millions of taxpayer dollars on bonuses for employees instead of using it to help needy students.

At Marywood University students learning about what the auditor general called the questionable use of funds had a lot to say about it.  Some of the undergrads, like many throughout Pennsylvania, receive loans and grants from PHEAA.

Now comes the auditor general's report that PHEAA handed out $7.5 million in bonuses to employees over the last few years and of $108,000 spent on an employee appreciation day at Hersheypark in April, just one month after the PHEAA board said it would hold back on excessive spending.

Marywood financial aid students Cassie Scannella of Mifflintown and Jimmy Langan of Meshoppen were dismayed to hear about the report and what they said it means to them and to their classmates.

"It kind of makes me angry because college is expensive and we're students and we're trying to better ourselves, so it would be nice if we could get a little bit more," said sophomore Scannella.

"That's what holds back some people from going to college. It's a lot of money to have to come up with in a short amount of time, so it does bother me," said Langan.

University of Scranton senior Brett Taroli of Old Forge is disappointed to hear about the spending but doesn't want to be too quick to judge the PHEAA employees.

"I don't really know how intense those people's jobs are. I can't imagine terribly," Taroli said.

The auditor general said if the employee bonuses were split across 2,500 students, it would mean 2,500 more in loans that could have been forgiven.

PHEAA's board responded to the announcement by calling an emergency meeting for next week. PHEAA president and CEO, Dick Willey, announced late Thursday afternoon said he will resign next week, two months earlier than expected.

http://www.wnep.com/Global/story.asp?S=7170854

 

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