(WHTM) — More than 100,000 Pennsylvania college students could start the school year missing financial aid.
The Pennsylvania State Grant Program, operated by PHEAA, provides $15 million in needs-based education grants each year. It’s the seventh largest needs-based state grant program in the nation.
But right now, months after students applied for the aid, the money isn’t going anywhere.
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“The PA General Assembly appropriates funds to PHEAA for the PA State Grant and other special programs,” said Bethany Coleman, vice president of public relations, communications and marketing for PHEAA. “Until the Governor signs the PA State Budget, final award determinations and disbursement for the 2025-26 PA State Grant Program are on hold.”
A state budget should have been on Gov. Josh Shapiro’s desk more than six weeks ago. Senate Republicans and House Democrats have each put forward proposals — neither legislative body wants to consider the other’s plan.
Both chambers are in recess until September, leaving negotiations at a stalemate.
Pennsylvania Senate passes spending plan, budget remains at standstill
Last year, students were eligible to receive grants as high as $5,750, depending on need, making for the largest award year in the program’s history. Without knowing how much money it will get for grants, PHEAA can’t send out any offers and schools won’t be able to adjust bills. It may also have to put other programs it provides on hold.
Some colleges and universities put a placeholder reflecting estimated grants, but Coleman encouraged students to discuss how the hold affects their financial aid package with their school or postsecondary institution.
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