
News
Associated Press, 4/5/10
Adolph calls for restructuring student loan agency
HARRISBURG, Pa. (AP) — Two state lawmakers who lead the board of Pennsylvania's student-loan agency are pushing measures to reduce by 25 percent the number of board members who are legislators, replacing them with people who have relevant professional experience.
Delaware County Rep. Bill Adolph, R-165 of Springfield, and Sen. Sean Logan, D-Allegheny, introduced identical bills Monday that would cut the number of sitting lawmakers on the 20-member Pennsylvania Higher Education Assistance Agency board from 16 to 12.
Logan said the goal is to fill those four spots with people knowledgeable about finance, banking and computer technology. The bill also emphasizes a need for those with a background in investing, higher education and higher-education finance.
Adolph and Logan, PHEAA board's chairman and vice chairman, respectively, said the complexity of the student aid industry requires the input of people with relevant professional experience.
The PHEAA board currently consists of 16 state lawmakers, three gubernatorial appointees and the secretary of education. The legislative members are evenly divided among the four caucuses.
"It was our feeling that if we were going to reduce the number of legislators on the board ... the replacements should have the background that would lead to better discussions regarding the more complicated decisions, financial decisions, that the board has to make," Adolph said.
PHEAA has come under fire in recent years for the high salaries of its executives and spending on lavish retreats and other items. Adolph said changing the board's composition would be a continuation of reforms that have included an end to retreats and staff bonuses.
The agency currently manages more than $84 billion in assets. Its grants and other services benefit millions of students at thousands of schools across the country.