2008 Woodie Awards
Commentary: MOHELA sale offers no guarantees
By: Kevin Huelsmann
Issue date: 9/28/06 Section: Opinion/Editorial
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Missouri has some of the most expensive state schools in the region. In a 2003 state audit, Missouri Auditor Claire McCaskill said, "providing higher education at an affordable price has become increasingly difficult with recent state budget pressures and large decreases in state funding."
Average tuition for Missouri's four-year public colleges and universities is the highest among the Big 12 states and second highest among the contiguous states. In addition, a national report ranked Missouri's recent tuition increases among the highest.
So why would Gov. Matt Blunt want to sell off assets of the Missouri Higher Education Loan Authority, an agency that has been providing low-interest loans to students since the early '80s?
It seems that to aid students in continuing their education, Blunt would want to keep this agency intact until he could find alternative ways to curb the rising costs of Missouri's higher education. Instead of selling off a large chunk of MOHELA's assets, why not reinvest that money to help provide lower interest rates and increase loan forgiveness?
MOHELA has been handling student loans since it was created by the Missouri Legislature in 1981. MOHELA has handled more than 500,000 loans for students in Missouri and surrounding states. The latest St. Louis Business Journal reported that MOHELA even had a $22 million surplus last year - a surplus that allowed MOHELA to forgive almost $4.5 million in loan principal from student loans in 2005.
Blunt announced that the deal, which involves MOHELA selling $350 million worth of assets, will go to the Missouri Legislature to receive final approval. The Board will vote Sept. 27, but it will not be final until it goes through the legislature.
In his announcement, Blunt said Attorney General Jay Nixon exhibited "reckless and irresponsible conduct." Blunt credited Nixon's disagreement as the source that prompted the change.
If approved by the legislature, the money from the sale of MOHELA's assets will be channeled through Missouri Development Finance Board. The 12-person board would make the final decision on how the money would be spent. The MDFB provides millions of dollars each year to fund projects ranging from airports and museums to manufacturing plants and parking garages. Out of 12 board members, there is only one elected member of MDFB - Lt. Gov. Peter Kinder. The rest of the board is made up of nine volunteers appointed by Blunt and the directors of the departments of Economic Development and Agriculture.
Average tuition for Missouri's four-year public colleges and universities is the highest among the Big 12 states and second highest among the contiguous states. In addition, a national report ranked Missouri's recent tuition increases among the highest.
So why would Gov. Matt Blunt want to sell off assets of the Missouri Higher Education Loan Authority, an agency that has been providing low-interest loans to students since the early '80s?
It seems that to aid students in continuing their education, Blunt would want to keep this agency intact until he could find alternative ways to curb the rising costs of Missouri's higher education. Instead of selling off a large chunk of MOHELA's assets, why not reinvest that money to help provide lower interest rates and increase loan forgiveness?
MOHELA has been handling student loans since it was created by the Missouri Legislature in 1981. MOHELA has handled more than 500,000 loans for students in Missouri and surrounding states. The latest St. Louis Business Journal reported that MOHELA even had a $22 million surplus last year - a surplus that allowed MOHELA to forgive almost $4.5 million in loan principal from student loans in 2005.
Blunt announced that the deal, which involves MOHELA selling $350 million worth of assets, will go to the Missouri Legislature to receive final approval. The Board will vote Sept. 27, but it will not be final until it goes through the legislature.
In his announcement, Blunt said Attorney General Jay Nixon exhibited "reckless and irresponsible conduct." Blunt credited Nixon's disagreement as the source that prompted the change.
If approved by the legislature, the money from the sale of MOHELA's assets will be channeled through Missouri Development Finance Board. The 12-person board would make the final decision on how the money would be spent. The MDFB provides millions of dollars each year to fund projects ranging from airports and museums to manufacturing plants and parking garages. Out of 12 board members, there is only one elected member of MDFB - Lt. Gov. Peter Kinder. The rest of the board is made up of nine volunteers appointed by Blunt and the directors of the departments of Economic Development and Agriculture.
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