"New program offers low-cost private loans for higher education.
The high cost of tuition and a need to use high-interest private loans to make up for federal loans that fall short of covering the full cost of education have combined to create student debt loads of about $37,000 for the average Pennsylvania undergraduate.
The state’s new PA Forward program aims to alleviate the cost of borrowing for college, said Dan Wray, account executive for PA Forward.
The program will provide borrower-friendly, low-cost private loans.
The Pennsylvania Higher Education Assistance Agency is the lender and loan servicer for the program, with a tax-exempt allocation provided by the Pennsylvania Department of Community and Economic Development.
The combined resources of the state allow the program to provide low-interest loans with better borrower benefits compared to most commercial private loan programs, Wray said.
Applications for the program have been open since April." …
http://www.altoonamirror.com/news/local-news/2019/07/pa-aims-to-close-tuition-fund-gap/
A government-sanctioned alternative for more loans for lower income PA families? Just wrong. How about more state funding to state schools so that tuition and other costs could be reduced? And/or higher state grants for low and modest income families? In 1966, when I graduated from a PA high school, the maximum state grant covered both tuition and room and board at a state school. Come on, Pennsylvania, face current reality and join the ranks of the states that make it possible for lower income students to get a college education without being saddled by astronomical loans.
Offering more loans doesn’t close the tuition gap. It only changes who they owe. NYS is trying to close the gap for our residents by offering tuition grants to students from families who earn less than $125k. Tuition is reasonable to begin with (~$7k) and the grant is really helpful for low income families who live within commuting distance of one of our campuses. I think tuition increases are capped at a few hundred dollars per year. PA residents would be better served by lower costs and higher grants. How are state backed loans supposed to help?