PHEAA to Cut College Grants

HARRISBURG, Pa. (AP) — The state's student-loan agency will cut college grants by up to $750 and offer voluntary buyouts to some employees to ease financial woes blamed on strained credit markets, officials said Thursday. The agency hopes to save $12.5 million a year through the nonunion buyouts, which will give eligible workers two weeks' pay for each year of service for up to 16 weeks, said spokesman Keith New of the Pennsylvania Higher Education Assistance Agency. The number of buyouts needed remains unclear, and will depend on the salaries of the departing workers. But the agency will impose layoffs only as a last resort, New said.

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