Tuition increase sends students
searching for alternative loan sources
raising tuition.
The tuition went up 13.5 percent in the 2002-03 school year. Upper-divi
sion students, the thrust of students at the Capitol Campus, saw an increase of
$502 per semester while graduate students paid an additional $534 per semester.
PHEAA is only allowed to lend up to $5,500 per year to each student and no more
than $23,000 over the course of an undergraduates education.
This has caused some Penn State students to go elsewhere to find the
money to finance their education. Shari Hatcher, accounting major, said, "I had to
take out a bigger loan [this year]." Mike Behney, communications major, said he
does not even bother with PHEAA to pay tuition as high as Penn State. "I loan
money from my local bank," he said. "and I still don't have to pay loans back until
after graduation. It was easier [to go to the bank] because I had loans for cars and
other things already."
Carolyn Julian, Penn State Capital College student aid advisor, called
herself the "troubleshooter" for students. She said while her direct affiliation with
PHEAA is limited, she has insight as to how things work and who to contact for
grant and loan questions. "Unfortunately tuition increases and aid increases have
not increased at the same pace," she said. "I am experiencing more and more stu
dents turning to alternative loans for funding."
By RACHEL SHEPHERD
Capital Times Staff Reporter
If you are a college student in Pennsylvania, you have
- obably heard of or dealt with PHEAA- Pennsylvania Higher
lucation Assistance Agency. PHEAA allocates billions of
liars in grant and loan money each year to assist students in
costs of education. However, the amount of grant money
‘.31 distribute has a limit, while tuition rates continue to rise.
Penn State University is among the many schools
Fortunately, student enrollment has not appeared to decline. Julian said
she did not see a sufficient drop in student enrollment due to the increase in
tuition. "If there is a decline, and I don't think there is, it's due to 'other reasons',"
she said. She explained that the most decline she has seen this semester is due to
reservists going overseas.
Students at other schools within the state said that PHEAA covered the
costs of their tuition and even gave some students money back. At Indiana
University of Pennsylvania (lUP), the cost of undergraduate tuition is $2,189 per
semester, nearly half the cost of the tuition at PSU. Matthew Kegg, history educa
tion major at lUP, said, "The money I received was more than adequate to fulfill
my educational needs." Kegg explained that he was able to pay for his books, sup
plies and even his car insurance with the refund he received from PHEAA.
Harrisburg Area Community College (HACC) students already receive a
break from the local school districts. which assist in paying a portion of the tuition.
The average cost for tuition of a sponsoring school district student is abOut $1,700
a semester. However, due to the rising costs of tuition at Penn State, some students
have opted not to transfer to Capitol Campus.
Ashley Fisher is among them. Fisher, who will attend Millersville
University next spring, considered taking a semester of classes at Penn State.
However, the cost of PSU changed her plans. "With the cost being over four grand
a semester, I think I will stay at HACC until next spring when I am ready to go to
Millersville." Fisher also said the grants and loans she received from PHEAA were
adequate in paying tuition and even some of her bills.
While PHEAA is among the nation's top three school lenders, they still
have trouble keeping up with the ever-increasing tuition rates. Julian said this is a
concern. "Their loan debt is increasing more and more," she said. "I hope students
will be in a position to handle this debt when they graduate."