Loan repayments have always been a very significant matter. The repayments received in a given year are applied to the next year as part of that year’s total amount available for scholarships. As a percentage of the total scholarships given each year, repayments since 2000 have been consistently in the 30% to 40% range.
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The first repayment was from Patricia Stern, as reported in the 1991 35th Anniversary booklet “Building Careers.” She was one of the Foundation’s first six scholarship recipients and was first “to repay her award of $300.”
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In the 40th Anniversary Booklet, “Building Careers” it was noted that in the beginning of the Foundation there would be scholarships ranging from $100 to $1500, no-interest loans to students who could pay part of their post-high school educational costs and outright grants for those continuing their studies, “if unable financially to continue,” as had been pledged from the start by Superintendent Medill Bair.
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In a 2006 report, “A Review of the [Board Meeting] Minutes of [the] Pennsbury Scholarship Foundation…” by Wanda Long, the Board of Directors’ early attention to loan repayments is clear, as noted in the following excerpts from the report:
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January 1958 Board Meeting: “when loans are made to students, a note [should] be signed by the student for repayment of the loan merely as a moral obligation.”
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January 1963 Board Meeting: “38 awards had been made by the Foundation, totaling $14,642.10 since 1957. The largest single loan was $800, three recipients had repaid their loans in full totaling 1400, and two others had made partial repayment. A letter was to be created and sent to all recipients whose loan was four or more years old and not repaid. In October 1963, another letter was to be created and sent to those who did not respond to the first letter.”
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January 1964 Board Meeting: “’Discussion was held ‘dealing with the Board policy regarding loans. It was decided to continue considering each on its own merit.”
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In June 1969: “a letter was written [presumably to recipients] stating that ‘since September 1957 fifty-seven young people had received aid through the Foundation in the total amount of $23,064.50.’ The letter did not ask for loan repayment, but ‘a contribution an amount commensurate with the assistance received’ by the recipient.”
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In January 1970: “it was requested that the secretary of the Foundation prepare a carefully worked out program to insure repayment of student loans.”
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Judy Petrangeli, President in 2002-2003, noted in a letter to fellow members that,
“in the early years of PSF most scholarships were awarded based on largely on need. Even though our scholarships have been awarded solely as half grant and half no- interest loans since 1980, the loan repayment expectation and response for many years was low. Serious tracking and attempt to encourage loan repayment didn't begin until the mid-1980s. At that time our long-time volunteer secretary, Kay Cooper, began to try to keep in touch with recipients who had graduated to suggest they start repaying.
When Paul Hartsfield joined the Board of Directors in 1983, found this loan repayment area to be his choice of interest and focus. He spent untold hours reviewing recipient folders, writing letters and making phone calls to try to find current addresses. In 1990 Phil McAloon [of Pennsbury Administration] wrote a computer program that would serve as a database and aid in tracking recipient loan repayments. As in many successful projects, the loan repayment efforts have been a team effort, but driven by Paul's determination.
As I indicated, in the 1980s loan collections reached no more than $4,000 to $7,000 per year. By the 1990s it began to be consistently over $10,000 dollars. In the last four years it has been between $25,000 and $30,000 each year.
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Largely due to Paul’s perseverance, determination, energy, policy-making insight, and willingness to spend time, over a quarter of a million dollars has been collected and recycled as awards in the last 20 years.
Let me emphasize that the loan repayment success has been a team effort, and it continues to be. B.J. Rassler updated the recipient database program in 1999, and Wanda has been working with Paul the last few years to try to reach any remaining past recipients who have not repaid. As we know, loan repayments have become an increasingly significant portion of the money available to be awarded each year, and it has been Paul’s leadership, vision and determination that has led us to our current level of loan repayments.”
An example of Paul’s work was seen in a memo he wrote in September 28, 1998. He recommended some changes to the in the schedule for sending statements and reported on the results of a ‘more forceful Special Letter.’ The letter had been sent to all loan recipients who had graduated from Pennsbury more than 4 years prior, but had never made a payment and for whom he had a correct address. Response: 5 paid in full totaling $3150 and 8 partial payments totaling $2110, for a total of $5260 from 13 recipients. A similar letter in 1997 had yielded $8375 for 22 recipients.” He concluded, “We plan to continue the use of special letter.”
Paul subsequently was honored with a certificate of appreciation from the Foundation. (Presented by Judy Petrangeli and Claire Connell.)​
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In 2004, Wanda Long, Chair of the Loan Repayments Committee at the time, made note that when Paul Hartsfield started making phone calls the loan repayments really increased. [By 2004} the group of older recipients who had been contacted and intended to repay had almost disappeared. [As a result,] the committee was working mostly on current repayments.
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In March 2004 the Loan Repayment Committee issued a memo stating specifically the Policy for repayment of loans and the Guidelines and Procedures to be followed to carefully keep track of recipients, securely handle records, and send statements and follow up in a timely and appropriate manner.
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The result has been that repayments since 2000 have consistently kept pace with the total distribution of scholarship money. As a percentage of the total distributed each year, repayments since 2000 have been consistently in the 30% to 40% range, generally around 36%. In 2021 repayments were $67,475 and the total distributed was $185,000, thus the repayments were 36.5% of the total given out.
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Clearly, the successful efforts of the Loan Repayments Committee to encourage scholarship recipients to "Pay it Forward" have been vital to the Foundation’s continued success.
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Compiled from the records of Wanda Long and scholarship office files. Hal Long
