Blunt to Sell Student Loan Organization
So, the Missouri Higher Education Loan Authority, or MOHELA, may soon be on the auction block.
Blunt wants to use some money from the sale to pay for buildings, a new scholarship program, and a new $80 million life sciences center at the University of Missouri in Columbia.
"MOHELA is valued today between $3.75 million and $4.25 million in a conservative estimate," said Blunt. "By getting full value out of this state asset, we can make some significant advances in higher education at public colleges and universities all across our state."
Craig Kleine works for Associated Students at the University of Missouri, or ASUM, a lobbying group. He worries privatizing student loans in the state could make college too expensive.
"If the loans aren't available for those students who are at a socioeconomical disadvantage, then we could see the enrollment rates at UMSL and here at UMC go down," said Kleine.
Non-profit groups like MOHELA lower their interest rates on student loans, while for-profit companies generally don't.
Blunt says the sale won't lead to higher loan rates or tuition increases.