Leaders of the State Student-loan agency in Pennsylvania are coming under fire for holding a three-day retreat at one of the state's most luxurious resorts, where they racked up a bill of more than $135,000.

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Author: Burd, Stephen

In June officials with the Pennsylvania Higher Education Assistance Agency, known as Pheaa, invited 70 people to attend a board meeting at the Nemacolin Woodlands Resort, which offers its guests fine dining, spa services, and two 18-hole championship golf courses. Among those attending, according to The Patriot News, in Harrisburg, were 10 of the 16 state legislators who are members of the agency's board.

Pheaa officials said it was important to hold retreats outside of the state's capital to attract board members and to remove them from daily distractions.

But agency critics â€" as well as editorial writers throughout Pennsylvania â€" chastised Pheaa for its lavish spending, saying that the money would have been better spent increasing grant aid for Pennsylvania students. They noted that Pheaa has spent close to $900,000 since 2000 on board retreats at resorts in California, Maryland, Virginia, and West Virginia.

The news of the costly retreat comes at a precarious time for the Pennsylvania agency. Sallie Mae, the nation's largest student-loan provider, is continuing to lobby state lawmakers to accept its $1-billion offer to purchase Pheaa's assets, including its student-loan portfolio, and to manage the agency.

While the legislators so far have resisted those entreaties, they have been increasing their scrutiny of Pheaa's finances. The Appropriations Committee of the State House of Representatives has hired an independent auditor to examine Pheaa's books to find out exactly how much the agency is worth.

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By Stephen Burd