August 13, 2007

MOHELA Borrowers Sue Over Gov. Matt Blunt’s plan to redirect funds

Posted in Student Loan News at 8:40 AM by Joe From Boston

For those who aren’t aware of the years-long struggle in Missouri, the Governor or Missouri has been trying to take money out of MOHELA, or Missouri Higher Education Loan Authority, to help build new buildings on state campuses.  He finally pushed it through earlier this year.

Now borrowers are fighting back.  Take a look at this article from NBC affiliate KOMU.

Student Loan Holders Sue

EFFERSON CITY (AP) – A lawsuit by student loan holders seeks to block Gov. Matt Blunt’s plan to take money from the state’s student loan authority to finance college construction projects.

The lawsuit against the Missouri Higher Education Loan Authority claims the agency is violating both its state-mandated mission and its fiduciary duty to students by allowing its money to go buildings instead of better deals for its borrowers. The lawsuit asks a Cole County judge to issue an injunction barring the loan agency from financing out the building plan and to declare it illegal. A law authorizing the deal is set to take effect Aug. 28.


1 Comment »

  1. […] Original post by moniqueleonard […]

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