Students’ financial aid from Pitt safe

‘ ‘ ‘ The Office of Financial Aid at Pitt has not made any plans to change the amount of… ‘ ‘ ‘ The Office of Financial Aid at Pitt has not made any plans to change the amount of financial assistance it provides to undergraduate students, despite the economic recession. ‘ ‘ ‘ ‘At this time, neither new nor continuing students should expect any changes in state, federal or institutional programs to dramatically impact their eligibility for grant or scholarship assistance in the coming school year,’ said Suzanne McColloch, Pitt’s senior assistant director of financial aid, in an e-mail. ‘ ‘ ‘ McColloch said that Pitt has received no indication that student loan eligibility under the Federal Family Loan Program ‘mdash; which provides Stafford and Stafford PLUS loans for entitled students ‘mdash; will be reduced next year. Federal and state education departments also show no indication of reductions in direct grant assistance provided to undergraduate students, said McColloch. ‘ ‘ ‘ Pitt freshman Amanda Sherry expressed little concern about the impact of the economic crisis on her finances for education. ‘ ‘ ‘ ‘I’m paying my education myself, and the majority of the money is coming from student loans,’ said Sherry. ‘If loans were reduced, I’d just have to work harder and find a way to pay for it. It would be really tough and complicated, but there’s always a way.’ ‘ ‘ ‘ Pennsylvania students already felt the tremors of the economic crisis when the Pennsylvania Higher Education Assistance Agency, or PHEAA, announced earlier in the year that out-of-state students attending school would no longer be eligible for KeystoneBEST federal loans because of the financial crunch. ‘ ‘ ‘ PHEAA spokesperson Mike Reiber said that despite the limitation, Pennsylvania students are still getting the money they need for college. ‘ ‘ ‘ ‘We haven’t heard of a single qualified student being denied a Stafford Loan in Pennsylvania,’ said Reiber. ‘The only problems with student loans will be coming out of the private sector, where qualifications for loans will become more restrictive in the light economy.’ ‘ ‘ ‘ McColloch confirmed that the PHEAA restrictions have had no impact on Pitt students. ‘ ‘ ‘ His advice to students concerned about financing their education is to look for money in the forms of grants and scholarships. ‘ ‘ ‘ ‘Every student’s situation is different, but these free awards severely reduce the amount of debt students will be faced with upon graduation,’ said Reiber. ‘It’s also essential to fill out the [Free Application for Federal Student Aid] form to qualify for federal student loans.’ ‘ ‘ ‘ Even if financial aid awards are not impacted by the economic crisis, students may still feel the results of the recession. ‘ ‘ ‘ Twenty percent of Pitt’s endowment relies on successful investments in stocks in U.S. companies, The Pitt News reported in a previous story. The endowment provides for scholarships and fellowships, construction projects and other University business. ‘ ‘ ‘ If the endowment does not grow over the year, provisions may have to be cut. Common effects of such money loss includes job loss and fewer building projects. ‘ ‘ ‘ Pitt spokesperson John Fedele said that the University will not comment on endowment losses until a committee meeting is held to determine the extent of repercussions and damages. ‘ ‘ ‘ ‘There are no shortages of federal loans this year, and we are not anticipating shortages next year,’ said Fedele. ‘We haven’t heard anything to suggest otherwise.’ ‘ ‘ ‘ High school guidance counselors in Pittsburgh try to emphasize the importance of grants and scholarships early. In Pittsburgh, eight out of the 10 public high schools receive Title I federal funding. This funding is only provided when 35 percent or more of the student body comes from a low-income family. ‘ ‘ ‘ Grants and scholarships are necessary to bolster funds for high school students seeking secondary education. ‘ ‘ ‘ At Langley High School, a Title I school in the Pittsburgh area, nearly two-thirds of the student body goes on to attend a two- or four-year college. The recently implemented Pittsburgh Promise, established by The Pittsburgh Foundation, provides financial aid to students and families of the Pittsburgh public schools for higher education at two-year and four-year colleges within Pennsylvania. ‘ ‘ ‘ Nevertheless, guidance counselor Christopher Hertneky already sees problems with financial aid for his students. ‘ ‘ ‘ According to Hertneky, financial aid has not adjusted to inflation, and scholarships simply do not provide enough money. ‘ ‘ ‘ ‘As a guidance counselor, I’ve seen that the poorest of students, no matter how much money they receive from scholarships, are still thousands of dollars short of funding their college education,’ said Hertneky. ‘ ‘ ‘ Low-income families often cannot shoulder the financial burden of taking out private loans to supplement federal aid. ‘ ‘ ‘ ‘Our parents do not really have the financial ability to withstand a reduction in aid,’ said Hertneky. ‘ ‘ ‘ On the Pittsburgh campus of the University, undergraduate student financial aid totaled more than $154 million for the 2007-08 school year, said the Office of Financial Aid. ‘ ‘ ‘ Need-based scholarship and grant assistance totaled at an average award of $7,265 per eligible student. ‘ ‘ ‘ ‘ ‘ ‘ Financial aid information for the current school year is not available at this time.