Council of Trustees Handbook 717-783-1540 Higher Education: Primer March 25, 2022 - Page 6 The direct appropriations to the state-related universities fall into a special category called non-preferred appropriations. Under the Pennsylvania constitution, any direct appropriation to an educational or charitable institution not under the absolute control of the commonwealth is subject to more stringent rules. Such appropriations must be made in separate bills and receive a two-thirds vote from each chamber of the General Assembly to become law. Currently, there are five institutions that receive non-preferred appropriations: the four state-related universities, and the University of Pennsylvania, which receives support to operate the only veterinary school in the state. Pennsylvania Higher Education Assistance Agency (PHEAA) Since 1963, the Pennsylvania Higher Education Assistance Agency (PHEAA) has helped students pay for college with grants, loans, and work-study opportunities and is one of the largest student financial aid organizations in the country. PHEAA’s flagship is the State Grant Program, which provides need-based financial aid to Pennsylvania students attending public and private colleges. PHEAA also provides institutional support to private colleges and a number of smaller programs.