Cole County Circuit Judge Richard Callahan on Sept. 11 declined to issue a restraining order preventing the Missouri Higher Education Loan Authority from transferring funds for the state to be used for construction projects. Under legislation passed this year, MOHELA is to give the state $350 million, with the first $230 million payment due this month.
On Sept. 7 MOHELA Executive Director Raymond Bayer Jr. recommended against transferring the money because of the lawsuit and changes in the student loan market. The MOHELA Board of Directors, however, voted 5-1 to proceed with the transfer.
The state law that established MOHELA in 1981 said the agency’s assets could only be used for the purpose of servicing low cost student loans and covering MOHELA’s necessary operating expenses. Although revisions to the law made this year allow MOHELA funds to be used for capital project, the lawsuit contends that assets accrued under the old law cannot be used for this new purpose.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment