PHEAA Announces Acceptance of Tenders in Tender Offer

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Harrisburg, PA (June 30, 2011)—The Pennsylvania Higher Education Assistance Agency (the "Agency") today announced that it has accepted for purchase for cash those of its auction rate Student Loan Revenue Bonds ("Auction Rate Bonds") issued under the Indenture of Trust, dated as of August 1, 1997, as amended and supplemented, between the Agency and Manufacturers and Traders Trust Company, as trustee (the "Indenture") as identified in the table below. The Auction Rate Bonds were subject to an offer to purchase (the "Offer"), the terms and conditions of which are set forth in the Offer to Purchase, dated as of May 31, 2011, as supplemented on June 9, 2011 (the "Offer to Purchase"). The Offer expired at 5:00 p.m. Eastern time on June 21, 2011 (the "Expiration Date").

Student Loan Revenue Bonds, Senior and Subordinate Series A through NN

Series Maturity Date Amount of Auction Rate Bonds Tendered Amount of Auction Rate Bonds Accepted CUSIP1

Taxable Senior (Series and Subseries) Bonds

A 8/1/2027 $28,000,000.00 $28,000,000.00 709163BN8
C 3/1/2028 39,850,000.00 39,850,000.00 709163BQ1
D 11/1/2028 13,650,000.00 13,650,000.00 709163BR9
F-1 10/1/2040 43,950,000.00 43,950,000.00 709163BX6
F-2 10/1/2040 43,450,000.00 43,450,000.00 709163BY4
F-3 10/1/2040 44,000,000.00 44,000,000.00 709163BZ1
H 10/1/2040 49,900,000.00 49,900,000.00 709163BV0
J-1 12/1/2040 43,000,000.00 43,000,000.00 709163CB3
J-2 12/1/2040 42,850,000.00 42,850,000.00 709163CC1
J-3 12/1/2040 42,650,000.00 42,650,000.00 709163CD9
J-4 12/1/2040 39,700,000.00 39,700,000.00 709163CE7
L-1 8/1/2041 3,850,000.00 3,850,000.00 709163CH0
L-2 8/1/2041 9,500,000.00 9,500,000.00 709163CJ6
R-1 8/1/2042 57,900,000.00 57,900,000.00 709163CZ0
R-2 8/1/2042 59,800,000.00 59,800,000.00 709163DA4
T-1 9/1/2042 3,550,000.00 3,550,000.00 709163DC0
T-2 9/1/2042 3,450,000.00 3,450,000.00 709163DD8
T-3 9/1/2042 25,450,000.00 25,450,000.00 709163DE6
T-4 9/1/2042 11,350,000.00 11,350,000.00 709163DF3
T-5 9/1/2042 15,700,000.00 15,700,000.00 709163DG1
V-1 10/1/2042 3,600,000.00 3,600,000.00 709163DJ5
V-2 10/1/2042 25,900,000.00 25,900,000.00 709163DK2
V-3 10/1/2042 13,800,000.00 13,800,000.00 709163DL0
V-4 10/1/2042 31,800,000.00 31,800,000.00 709163DM8
Y-1 9/1/2043 5,300,000.00 5,300,000.00 709163DT3
Y-2 9/1/2043 14,200,000.00 14,200,000.00 709163DU0
Y-3 9/1/2043 2,500,000.00 2,500,000.00 709163DV8
Y-4 9/1/2043 18,000,000.00 18,000,000.00 709163DW6
BB-1 11/1/2044 31,500,000.00 31,500,000.00 709163EE5
BB-2 11/1/2044 7,600,000.00 7,600,000.00 709163EF2
BB-3 11/1/2044 5,500,000.00 5,500,000.00 709163EG0
BB-4 11/1/2044 1,400,000.00 1,400,000.00 709163EH8
CC-1 8/1/2045 60,000,000.00 60,000,000.00 709163EM7
CC-2 8/1/2045 56,850,000.00 56,850,000.00 709163EN5
CC-3 8/1/2045 39,800,000.00 39,800,000.00 709163EP0
DD-1 9/1/2045 8,750,000.00 8,750,000.00 709163EQ8
DD-2 9/1/2045 8,200,000.00 8,200,000.00 709163ER6
EE-1 12/1/2045 24,700,000.00 24,700,000.00 709163ES4
EE-2 12/1/2045 1,600,000.00 1,600,000.00 709163ET2
EE-3 12/1/2045 8,150,000.00 8,150,000.00 709163EU9
EE-4 12/1/2045 16,000,000.00 16,000,000.00 709163EV7
GG-1 12/1/2045 4,900,000.00 4,900,000.00 709163EX3
GG-2 12/1/2045 37,900,000.00 37,900,000.00 709163EY1
GG-3 12/1/2045 100,000.00 100,000.00 709163EZ8
GG-4 12/1/2045 36,900,000.00 36,900,000.00 709163FA2
GG-5 12/1/2045 20,600,000.00 20,600,000.00 709163FB0
GG-6 12/1/2045 56,000,000.00 56,000,000.00 709163FC8
HH-1 5/1/2046 1,175,000.00 1,175,000.00 709163FF1
HH-2 5/1/2046 2,550,000.00 2,550,000.00 709163FG9
HH-3 5/1/2046 900,000.00 900,000.00 709163FH7
HH-4 5/1/2046 4,325,000.00 4,325,000.00 709163FJ3
HH-5 5/1/2046 28,475,000.00 28,475,000.00 709163FK0
HH-6 5/1/2046 46,000,000.00 29,750,000.00 709163FL8
HH-7 5/1/2046 950,000.00 950,000.00 709163FM6
HH-8 5/1/2046 52,850,000.00 52,850,000.00 709163FN4
HH-9 5/1/2046 50,225,000.00 50,225,000.00 709163FP9
HH-10 5/1/2046 2,650,000.00 2,650,000.00 709163FQ7
JJ-1 6/1/2046 51,750,000.00 51,750,000.00 709163FS3
JJ-2 6/1/2046 2,300,000.00 2,300,000.00 709163FT1
JJ-3 6/1/2046 0.00 0.00 709163FU8
JJ-4 6/1/2046 50,025,000.00 50,025,000.00 709163FV6
JJ-5 6/1/2046 500,000.00 500,000.00 709163FW4
JJ-6 6/1/2046 2,475,000.00 2,475,000.00 709163FX2
JJ-7 6/1/2046 59,550,000.00 59,550,000.00 709163FY0
JJ-8 6/1/2046 0.00 0.00 709163GA1
JJ-9 6/1/2046 43,550,000.00 43,550,000.00 709163GB9
JJ-10 6/1/2046 400,000.00 400,000.00 709163GC7
LL-1 4/1/2047 0.00 0.00 709163GK9
LL-2 4/1/2047 750,000.00 750,000.00 709163GL7
LL-3 4/1/2047 2,325,000.00 2,325,000.00 709163GM5
LL-4 4/1/2047 0.00 0.00 709163GN3
LL-5 4/1/2047 0.00 0.00 709163GP8
LL-6 4/1/2047 0.00 0.00 709163GQ6
LL-7 4/1/2047 57,750,000.00 57,750,000.00 709163GR4
LL-8 4/1/2047 70,275,000.00 70,275,000.00 709163GS2
LL-9 4/1/2047 69,125,000.00 69,125,000.00 709163GT0
LL-10 4/1/2047 2,950,000.00 2,950,000.00 709163GU7
MM-1 6/1/2047 5,500,000.00 5,500,000.00 709163GV5
MM-2 6/1/2047 1,550,000.00 1,550,000.00 709163GW3
MM-3 6/1/2047 1,675,000.00 1,675,000.00 709163GX1
MM-4 6/1/2047 1,075,000.00 1,075,000.00 709163GY9
MM-5 6/1/2047 0.00 0.00 709163GZ6
MM-6 6/1/2047 28,725,000.00 28,725,000.00 709163HB8
TOTAL   $1,805,450,000.00 $1,789,200,000.00  

Tax Exempt Senior (Series and Subseries) Bonds

N-1 6/1/2037 5,500,000.00 5,500,000.00 709163CT4
N-2 6/1/2037 4,300,000.00 4,300,000.00 709163CU1
P-1 3/1/2022 56,000,000.00 56,000,000.00 709163CW7
P-2 3/1/2022 56,000,000.00 56,000,000.00 709163CX5
W-1 6/1/2038 63,900,000.00 63,900,000.00 709163DQ9
W-2 6/1/2038 12,900,000.00 12,900,000.00 709163DR7
Z-1 6/1/2039 39,900,000.00 39,900,000.00 709163DX4
Z-2 6/1/2039 32,300,000.00 32,300,000.00 709163DY2
Z-3 6/1/2039 15,900,000.00 15,900,000.00 709163DZ9
Z-4 6/1/2039 2,850,000.00 2,850,000.00 709163EA3
AA-1 6/1/2039 45,450,000.00 45,450,000.00 709163EB1
AA-2 6/1/2039 43,000,000.00 43,000,000.00 709163EC9
AA-3 6/1/2039 45,600,000.00 45,600,000.00 709163ED7
TOTAL   $423,600,000.00 $423,600,000.00  

Taxable Subordinate Bonds

B 8/1/2027 15,000,000.00 15,000,000.00 709163BP3
E 11/1/2028 5,000,000.00 5,000,000.00 709163BS7
G 10/1/2040 9,500,000.00 9,500,000.00 709163CA5
I 10/1/2040 10,000,000.00 10,000,000.00 709163BW8
K 12/1/2040 23,300,000.00 23,300,000.00 709163CF4
M 8/1/2041 0.00 0.00 709163CK3
S 8/1/2042 10,000,000.00 10,000,000.00 709163DB2
U 9/1/2042 0.00 0.00 709163DH9
FF 12/1/2045 0.00 0.00 709163EW5
II 5/1/2046 500,000.00 500,000.00 709163FR5
KK 6/1/2046 0.00 0.00 709163GD5
NN 6/1/2047 10,375,000.00 3,900,000.00 709163HA0
TOTAL   $83,675,000.00 $77,200,000.00  

Tax Exempt Subordinate Bonds

O 6/1/2037 0.00 0.00 709163CV9
Q 3/1/2022 10,000,000.00 10,000,000.00 709163CY3
X 6/1/2038 0.00 0.00 709163DS5
TOTAL   $10,000,000.00 $10,000,000.00  
 
TOTAL AUCTION RATE BONDS $2,322,725,000.00 $2,300,000,000.00  

Based on the count by Bondholder Communications Group LLC, the tender and information agent for the Offer, as of the Expiration Date, $2,322,725,000.00 aggregate principal amount of Auction Rate Bonds were validly tendered in the Offer. In accordance with the terms and conditions of the Offer to Purchase, the Agency has accepted for purchase for cash $2,300,000,000.00 aggregate principal amount of those Auction Rate Bonds validly tendered in the Offer. In determining which Auction Rate Bonds to accept for purchase, the Agency followed the methodology set forth in the Offer to Purchase.

Tendered Auction Rate Bonds that were not accepted by the Agency will be returned to the applicable bondholders. The consideration to be paid to bondholders of Auction Rate Bonds accepted by the Agency in the Offer will be paid in the amounts and in accordance with the terms set forth in the Offer to Purchase, which is expected to occur on the settlement date of July 14, 2011. All tendered Auction Rate Bonds accepted for purchase will be cancelled on the settlement date.

The Offer is subject to a number of conditions that must be satisfied, including but not limited to, the condition that the Agency is able to obtain the requisite cash necessary to complete the Offer by obtaining a day loan from Morgan Stanley & Co. LLC, all as more fully described in the Offer to Purchase.

Morgan Stanley & Co. LLC acted as the dealer manager for the Offer.

Bondholder Communications Group LLC acted as the tender and information agent for the Offer.

This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase any Auction Rate Bonds.

1CUSIP is a registered trademark of American Bankers Association. None of PHEAA, the Dealer Manager, the Trustee, the Information AgentĀ or the Tender AgentĀ makes any representation as to, or takes responsibility for, the accuracy of such CUSIP numbers. CUSIP numbers are provided for convenience of reference only.