Missouri Gov. Matt Blunt signed into law Wednesday a bill financing college buildings with Missouri Higher Education Loan Authority funds.
The controversial $350 million plan includes new limits on tuition increases, enhanced oversight, and a new scholarship program.
MOHELA staff believe the agency can sell existing loans, provide the state money, buy new loans, and still maintain low interest rates and loan-forgiveness programs. But critics think the sudden depletion of funds will leave MOHELA incapable of competing with deals offered by competitors. Blunt has been pushing the plan since January 2006.
The plan’s approval has been blocked by several legal issues related to MOHELA staffing and business practices, in addition to Democratic opposition over the past year and a half.
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