Paterno was born December 21, 1926, in Brooklyn, New York, the son of Florence de LaSalle Cafiero, a homemaker, and Angelo Lafayette Paterno, a law clerk. His family was of Italian ancestry. He spoke throughout his life with a marked Brooklyn accent. In 1944, Paterno graduated from Brooklyn Preparatory School.

Paterno was a long-time advocate for some type of college football playoff system. The question was posed to him frequently over the years, as only one of his five undefeated teams was voted national champion.  Paterno believed that scholarship college athletes should receive a modest stipend, so that they have some spending money. As justification, Paterno pointed out that many scholarship athletes came from poor families and that other students had time to hold down a part-time job, whereas busy practice and conditioning schedules prevented college athletes from working during the school year.  Paterno initially preferred not to play true freshmen, but later in his career he did play redshirts in order to refrain from being at a competitive disadvantage. Some Penn State recruits, like recruits at many other schools, now graduate from high school a semester early so that they can enroll in college during the spring semester and participate in spring practice. Several team members from the recruiting class of 2005, including Justin King, Anthony Scirrotto, and Derrick Williams, received considerable playing time as true freshmen during the 2005-2006 season.  In 2010, Paterno and former Chicago Bears head coach Mike Ditka suggested that concussions and other injuries in the NFL and college football might be reduced if face masks were eliminated.  Penn State's football players were twice recognized for outstanding academic performance by the New America Foundation's Academic Bowl Championship Series while under the leadership of Paterno. The team was ranked number one out of the top 25 ranked BCS teams in 2009 and 2011. The criteria in the rankings include the graduation rate of the team as compared to the rest of university, the difference between the graduation rate of African-American players and the rest of the squad as well as the same statistics for the rest of the students at Penn State, and the graduation rate differences between the African American players and students.

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