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Thursday, May 1, 2008


The House of Representatives on April 28 gave final approval to legislation intended to help the Missouri Higher Education Loan Authority, which has been struggling financially since the Republican-controlled General Assembly last year raided the agency’s assets to pay for a campus construction plan championed by Gov. Matt Blunt. The bill now awaits the governor’s signature to become law.

SB 967 will allow MOHELA to originate federal student loans, which agency officials say will enable it to generate more revenue. In opposing last year’s raid of MOHELA assets, House Democrats predicted it would threaten the agency’s financial future and jeopardize its ability to provide lost-cost student loans. MOHELA reported the first financial loss in its history just months after making its first $230 million payment to the state. MOHELA was unable to make the full $5 million quarterly payment it was scheduled to make last month.

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