HARRISBURG, Pa. -- A hearing examiner recommended that Pennsylvania's student loan agency make spending records available to the public, but the agency said on Wednesday it would continue to keep most of the documents secret.

The hearing examiner said the Pennsylvania Higher Education Assistance Agency should grant requests by three reporters -- including Team 4 investigator Jim Parsons, from WTAE Channel 4 -- for various financial documents and other records.

The examiner rejected the agency's argument that the records are exempt from the state's Right-to-Know Law because most of its board members are state legislators, or because disclosure may hurt it competitively.

"PHEAA is engaged in a profitable business, the earnings from which provide significant benefits to the citizens of Pennsylvania," wrote the examiner, Warren G. Morgan, a retired Dauphin County judge. "That, however, doesn't change the fact that it is a public corporation and governmental instrumentality and that its earnings are public moneys."

Morgan's nonbinding recommendations were issued to PHEAA on May 22 and released by the agency on Wednesday.

Ignoring the recommendation, PHEAA issued a "final decision" on Wednesday that rejected records requests by The Associated Press, the Patriot-News of Harrisburg and WTAE-TV.

PHEAA said turning over the records would violate individuals' privacy rights and hamper its ability to perform its mission. It also said the records are exempt because they relate directly to lawmakers' legislative activities.

Its decision said "undisputed facts compel the conclusion that the legislative members of PHEAA's board are acting as an arm of the General Assembly when they engage in PHEAA activities," wrote chief executive Richard Willey.

AP assistant general counsel Dave Tomlin said the news organization would appeal. He denied PHEAA's claim that the requests may harm the agency's competitive position or invade privacy.

"It's simply an excuse for not doing what the law requires them to do," Tomlin said.

Parsons asked for records pertaining to travel and training expenses.

Patriot-News reporter Jan Murphy sought information from eight board meetings.

AP reporter Martha Raffaele requested details about the board's June 2005 retreat at Nemacolin Woodlands Resort in Fayette County. The three-day meeting, attended by 70 people, cost the agency $136,000.

The Patriot-News has reported PHEAA has spent more than $800,000 on board trips in recent years.

In September, PHEAA denied the requests, then asked Commonwealth Court to uphold its decision. The news companies countersued, and in November the two sides agreed to argue their cases before Morgan.

PHEAA employs about 2,500 people and has nearly $82 billion dollars in assets under management, through its guaranty, servicing, lending and secondary market activity.

Created by the Legislature in 1963, it collects about $600 million a year in student loan payments and is Pennsylvania's largest source of student loans, grants and loan-forgiveness programs.