Line of credit granted to underwrite PHEAA’s student loan rehabilitation initiative and the PA Forward Student Loan Program
Harrisburg, PA - Pennsylvania Treasurer Joe Torsella today announced the authorization of a line of credit from Treasury’s Short-Term Investment Pool (STIP) to the Pennsylvania Higher Education Assistance Agency (PHEAA) to support PHEAA’s student loan rehabilitation initiative and its PA Forward Student Loan Program. Treasury has provided lines of credit to PHEAA since 1990 to assist in the funding of education loans to Pennsylvania students and families.
From July 2016 through December 2019, PHEAA has been able to help more than 60,000 borrowers and their families with $2.1 billion in loans through the Federal Family Education Loan Program (FFELP) loan rehabilitation initiative.
Since its inception in April of 2019, PHEAA’s PA Forward Student Loan Program has approved $33.7 million in loans to help 2,331 applicants in Pennsylvania. The low-cost, private loans are available to undergraduate and graduate students and parents who meet certain residency requirements. PHEAA is both the lender and servicer for the PA Forward Student Loan Program.
This new line of credit, effective December 31, 2019, will continue to be used by PHEAA to underwrite FFELP loan rehabilitation. The Line of Credit provides that PHEAA’s PA Forward Student Loan Program will be administered consistent with the Principles for Non-Profit, State Based and State Chartered Organizations making education loans. These principles include appropriate outreach programs, encourage smart and responsible borrowing, fair and affordable loan terms and repayment options, and assistance for distressed borrowers.