Pennsylvania Treasurer Catherine Baker Knoll recently announced that her office has increased its contribution to the Pennsylvania Higher Education Assistance Agency to $500 million.
The agency insures that college loans to Pennsylvania residents are repaid. According to officials in the treasurer's office, Pennsylvania students default on 3% of all college loans granted.
"This is a good investment for everyone because it enables college students to stay in school while protecting the jobs of teachers and other campus employees," Knoll said in a release. "Without the program, many of Pennsylvania's college students would be forced to seek alternative financing or would not be able to attend college at all."
The investment was approved by both the treasurer's office and the agency's president and chief executive officer, Jay W. Evans, on Dec. 14.
In May 1990, Knoll made an initial $200 million commitment to the agency to save 87,000 Pennsylvania college student loans and protect thousands of campus jobs in the state, according to Michael Arpey, general counsel for the treasurer's office.
In June 1991, the treasurer confirmed her $200 million initial investment in the program and pledged an additional $60 million.