Pros
I can't comment on all the departments as apparently grad. student employments differs greatly by department. If you can get a research assistantship you will be working with interesting thinkers and learning a great deal. If you realize you are not moving to a big city and don't expect big city living, the State College is an affordable town with a good deal interesting people living here.
Cons
In the college of ed, there are no guarantees of funding at even a minimum level and there is even less a culture of transparency which makes it very difficult to determine who gets funding and why. Another example of failed transparency is the health care debacle which exemplifies PSU cavalier attitude towards grad students. This leads to much insecurity and apprehension as funding renewal season roles around. Little funding and many grad students lead to many avoidable issues.
