For Pennsylvania college students, securing grant money for the upcoming year will prove to… For Pennsylvania college students, securing grant money for the upcoming year will prove to be a difficult task because of the shortage of money allocated for Pennsylvania’s higher education program.

Since the 2006-2007 school year, tuition costs and living expenses have increased considerably. However, the budget for the 2007-2008 school year in the Pennsylvania State Grant program has not increased in accordance.

Approximately 167,000 Pennsylvania students could lose a portion of their state grants because of the imbalance. This loss could be avoided if Gov. Ed Rendell and the general assembly approve the minimum 2.5 percent increase in the State Grants program for next school year.

“The grant program is often the key difference-maker for families struggling to pay tuition,” said State Sen. Sean Logan, D-Allegheny/Westmoreland, who is also the vice-chairman of the Pennsylvania Higher Education Assistance Agency Board of Directors.

To combat the shortage, PHEAA has committed to adding $75 million from its personal business earnings to assist the program next year. This closing school year, PHEAA added $72.5 million to the grant program. In two years, PHEAA has increased the State Grants program by almost $150 million.

In addition to the investment of $75 million, PHEAA will use a new awarding formula that promises to add $200 to the maximum award of $4,500 and to increase the number of award recipients by 5,750.

“This is on top of $19 million PHEAA spends to administer the program every year,” Logan said. “This makes our program the most effective and efficient program of its kind in the nation.”

Even with the commitment made by PHEAA, the grant program will fall short by $9 million, unless the Commonwealth takes steps to increase the budget.

The Pennsylvania Association of Student Financial Aid Administrators held their second news conference May 14 at Carnegie Mellon University. The purpose of the conference was to discuss and gain the support necessary to contact the general assembly and governor’s office and urge them to focus on increasing funding for the grant program. A third conference will be held in Erie, Pa.

As it stands, if the budget is not increased by the recommended 2.5 percent, students eligible for state grants will receive two separate figures in their award letters. One figure will represent the amount in grants they will receive including the currently absent $9 million, and one figure will represent the amount they will receive if the Commonwealth does not increase funding.

“The increase in funding can be the difference between attending or not attending a college,” said Keith New, PHEAA vice president of public realtions. “We don’t want Pennsylvania students to get left behind.”