The Missouri Higher Education Loan Authority is considering skipping a $5 million payment due Monday as a part of Gov. Matt Blunt's controversial plan to use the agency's assets to pay for campus construction projects. The MOHELA board was scheduled to discuss at its March 28 meeting whether it can afford to make the payment.
Since its founding in 1981 to provide low-cost student loans, MOHELA's assets had been off limits to legislative raids. That changed last year when the General Assembly passed a law requiring MOHELA to give $350 million to the state. MOHELA made its first $230 million payment in September. Under the 2007 law, MOHELA is supposed to make $5 million quarterly payments to the state for the next six years.