PHEAA editorial misrepresented the facts

When I earned a bachelor’s degree in journalism from Penn State, I was taught to make sure that my facts were accurate before submitting a paper for publication. Unfortunately, the Centre Daily Times embraces the adage “never let the facts get in the way of a good story.”

Jake Corman

In an effort to follow that first rule of responsible, professional journalism,

please allow me to correct the record on this newspaper’s May 1 editorial with regard to the Pennsylvania Higher Education Assistance Agency.

Yes, my father and I have served together on the PHEAA board, but the accuracy ends there. More than two months ago, my father resigned from the board and no longer serves as a member.

I, however, am still a member of the PHEAA board of directors. At no time in my five years of service have I attended a board retreat, played golf at PHEAA’s expense or benefited from the perks that have been so widely publicized.

More importantly, the CDT knows this but chose to insinuate my involvement in a practice that has been rightfully criticized and subsequently disbanded.

In addition to the policies that have been set in place, PHEAA has hired a new CEO, Jim Preston.

Preston is a very valuable employee who graciously agreed to head the organization at a salary far below what PHEAA’s competitors offer. In fact, when doing our national search to fill the position, many qualified applicants turned PHEAA down due to the perceived low compensation package.

With all of the CDT’s snide remarks aside, let me report the real story behind the reduction in grants and laying off of employees.

In layman’s terms, PHEAA borrows money from the bond market at low rates so it can lend it to students in Pennsylvania at favorable rates. Unfortunately, PHEAA, like every other student loan organization, can no longer access money from the bond market at these low rates due to financial factors including the mortgage loan crisis.

This is clearly a national problem, not one just facing PHEAA.

Fortunately, PHEAA has planned for a rainy-day situation and can continue the grant program, even though it is at a reduced rate. Hopefully, the bond market will return to normal and PHEAA will be able to return to a position where it grants hundreds of millions of dollars every year to students in Pennsylvania.

I know that, because of past mistakes, PHEAA is an easy target. But I think readers are interested in the actual facts and not the CDT’s cynical portrayal of recent events.

State Sen. Jake Corman, R-Benner Township, represents the 34th Senatorial District. Readers can write to him at jcorman@pasen.gov.