Although the University will pull in more than $10 million from its new alliance with AT&T, the deal hasn't left students on hold.

Cheaper long-distance rates for off-campus students, telecommunications expansion and a center for service leadership will all affect students by making money available that the University wouldn't have received otherwise.

During a 10-year period, the partnership with the American Telephone & Telegraph Co. will generate $10 million in new funds, as well as $17 million from existing contracts and up to $20 million in cost savings for students, staff and faculty.

"We think this will have a wealth of benefits to students," said Roger Williams, executive director of University relations.

Students living on campus already receive a discount on long-distance rates, but the alliance will also extend these benefits to off-campus students, faculty and staff who use AT&T.

Michael Keane (senior-engineering science) said he uses AT&T now and cheaper long-distance rates would reduce his monthly payments.

"I'd enjoy any money I can get," he said.

Richard Hillary (junior-English and history) also said he liked the idea of lower long-distance rates but thinks the University gets involved with too many companies.

"I think I would rather pay more than have the University keep sponsoring these monolithic corporate deals," he said.

The deal will also provide the University with some of the funds necessary to expand telecommunications -- chiefly in the area of distance education.

"Penn State, like any organization, really needs to make some very rapid transformations into the new age that is dawning," Williams said.

Distance education involves various forms of education where the instructor and students are at separate locations. Whether geographic or time separation, distance education includes correspondence courses, E-mail or even "beaming in" a professor from a different campus, said Gary Miller, assistant vice president for distance education.

The University is already a forerunner in researching distance education and the AT&T partnership will help expand efforts by electronically linking the Commonwealth Campuses, Miller said.

"It helps unify the various geographic locations of Penn State," he said.

Another factor of the deal that affects students is the AT&T Center for Service Leadership, planned to open in 1995.

"That's one aspect I think everyone is excited about," said Eileen Dixon, who works in AT&T's public relations department.

The center will prepare students for future roles in businesses and communities by offering programs to develop leadership, Dixon said.