Financial loss leads loan agency to consider delay in payments

JEFFERSON CITY, Mo. -- Financial losses have led Missouri's student loan authority to consider whether it should delay a scheduled payment toward the state's college construction program.

Under state law, the Missouri Higher Education Loan Authority is to make a $5 million quarterly payment to the state by Monday as part of a several year, $350 million college building plan.

But MOHELA board members have scheduled a meeting Friday to consider whether they can afford to make the payment.

The loan authority has lost $12.9 million this year, executive director Raymond Bayer Jr. said Wednesday, as it's been affected by a national credit market crunch and a reduction in federal subsidies to lenders.

-- Associated Press