Legislative alerts

On Oct. 6, 2005, representatives Mike Turzai (R-Allegheny) and Kevin Blaum (D-Luzerne) introduced bipartisan legislation designed to increase and promote open and fair lender competition in the state of Pennsylvania while providing high-quality services at lower prices for Pennsylvania schools and students.

Specifically, the legislation would:

• Transfer all grant-making authority from the Pennsylvania Higher Education Assistance Agency to the newly formed Commonwealth Student Grant and Loan Forgiveness Authority.
• Rename grants made to students "Legislative Education Assistance Program," or "LEAP," Grants and grants made to schools "Legislative School Assistance Grants."
• Transfer $16 million that PHEAA currently spends on grant administration to the Commonwealth Student Grant and Loan Forgiveness Authority for LEAP Grants and Legislative School Assistance Grants.
• Provide all Pennsylvania schools with the same grant program information.
• Require PHEAA to provide its origination, guaranty and disbursement services to any lender who originates more than $1 million in new FFELP loans at Pennsylvania colleges or universities in a single academic year regardless of if the lender participates in the agency's Keystone program.
• Require any lender that decides to use PHEAA's services to pay a fee based on competitive market rates.
• Allow the Commonwealth Student Grant and Loan Forgiveness Authority to contract with PHEAA at a reasonable market rate for grant distribution.

View the bill in its entirety here (PDF, 330 kb).