PHEAA’s (Pennsylvania Higher Education Assistance Agency) leaders are putting their own self interest above the needs of Pa. students, according to Auditor General Jack Wagner. He called to replace eight of the 16 legislators on the 20-member board with financial and academic experts, according to the Pa. Department of the Auditor General.

“Leadership changes are necessary because PHEAA has failed its mission by not using all of its available resources to benefit Pennsylvania students,” Wagner said. “The negative reaction clearly (from PHEAA) demonstrates that PHEAA is not fully committed to the reforms needed to better serve Pennsylvania students.”

Auditors documented a pattern of expenditures by which top management benefited themselves at the expense of taxpayers and students, including excessive spending on salaries and cars, as well as annual bonuses that will inflate their pension benefits on retirement, according to the Auditors website.
According to Wagner, the $6.4 million in bonuses could have provided 1,702 Pennsylvania students a maximum education grant, which ranged from $3,300 to $4,500 during the audit period. With college costs rising dramatically this could have helped many students. State universities and private universities will also get a representative in PHEAA.

Wagner will work with the PHEAA board to make sure that changes are made accuartely.

Links to the original report fromthe Auditor General: Link 1, Link 2, Link 3