State university program would offer free education in exchange for staying in Pennsylvania

When Edinboro University senior Sam Bohen graduates in May, he’ll bring a wealth of knowledge, lifelong friendships and $40,000 in student debt.

“Many students are working our way through college by spending our days in class and our nights on the job so that we can afford rent and books,” Bohen said. “We do all of that hard work and still graduate $40,000 in debt.”

Gov. Tom Wolf is proposing offering scholarships to full-time undergraduate students at the 14 Pennsylvania State System of Higher Education (PASSHE) universities who have a household income of under $104,800.

In exchange, the student would agree to stay in Pennsylvania after graduation for the same number of years for which they receive the benefit. Otherwise, the scholarship would become a low-interest loan.

For the most economically disadvantaged students, the scholarship would cover the tuition and fees gap not covered by a student’s Pell and PA State Grants.

The program also would create an Emergency Grant Fund at state universities to meet any emergency expenses the scholarship recipients might have, including books, paying final account balances, or other nominal costs that often prohibit students from registering for classes or obtaining transcripts.

“Our country has a student loan debt crisis’ and it’s a burden that lasts for years and holds young people back from starting a family, buying a home and saving for retirement,” said Wolf. “I am proposing the Nellie Bly Scholarship Program to help college students build lives in their communities rather than struggling to pay student loan bills every month.”

The proposed program gets its name from the pen name used by Elizabeth Cochran, a Burrell Township, Armstrong County native who was born in 1864. Bly attended the Indiana Normal School — now Indiana University of Pennsylvania — but left due to the cost. Bly became a pioneering journalist who helped to force reforms to the mental health care system in the early 20th century. Inspired by Jules Verne’s novel, Bly also completed a trip around the world in just 72 days.

The program would be funded by shifting $199 million from the Pennsylvania Race Horse Development Trust Fund. About 80% of the revenue, state officials said, goes to purses for horse owners, many of whom are from other states or countries.

The fund has provided more than $3 billion over 16 years to subsidize the industry, and the proposal has drawn criticism from the state’s horse racing industry.

State Sen. Cameron Bartolotta, R-Washington, whose district includes the Meadows Racetrack & Casino, called the proposal a “nonstarter.”

Since 2010, tuition and fees at public higher education institutions have increased by 16%, according to the state Department of Education. Overall cost of tuition and fees, room and board and books at state-related universities averages $22,000 a year.

“The cost of attending college in Pennsylvania continues to prevent students and families from choosing to pursue a post-secondary education,” said Acting Secretary of Education Noe Ortega. “For many of our residents, loans have become the primary pathway to a college degree, and students must be willing to accept the burden of debt in order to pursue their dreams.”

The Pennsylvania State System of Higher Education is the largest provider of higher education in the commonwealth with 93,000 students. The university system includes Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock, and West Chester.