Local lawmakers support selling MOHELA

~ The River Campus project could be partially funded with money from the proposed sale of student-loan agency.

The proposed sale of Missouri's student-loan agency could provide money to help fund Southeast Missouri State University's River Campus project, Lt. Gov. Peter Kinder and two local state representatives said Friday.

Kinder and state representatives Scott Lipke and Nathan Cooper, all Republicans, vowed to add the River Campus project to the list of projects that would be funded by Gov. Matt Blunt's proposed sale of the not-for-profit Missouri Higher Education Student Loan Authority.

The three made their comments following a luncheon meeting of the Cape Girardeau Area Magnet industrial recruitment association the Cape Girardeau Career and Technology Center. Kinder was the featured speaker at the event, which drew a crowd of about 100 civic, government and business leaders.

Protecting students

Republican state Sen. Jason Crowell of Cape Girardeau, who also attended the luncheon, said he must first be convinced that the sale of MOHELA wouldn't hurt debt-burdened college students before he would support it.

"If it turns out we can't protect the students, then I have a concern," he said. "I do think it is a big hurdle to get over."

The governor would need approval of both the legislature and the MOHELA board to carry out the plan, lawmakers said.

Some lawmakers worry that the sale of the loan authority to a for-profit company would saddle students with higher interest rates to pay off their college loans.

But Kinder, Lipke, Cooper and Southeast president Dr. Ken Dobbins believe the state could require bidders to provide guarantees to keep interest rates low on student loans.

Kinder said the sale of MOHELA offers an opportunity to fund college projects without incurring debt. "This is cash and carry," he said.

The majority of profits from the sale -- projected by investment banker Goldman Sachs to total as much as $425 million -- would go toward a statewide building boom at public universities.

Blunt proposes to spend nearly $300 million on 20 college capital improvement projects, including construction of a life-science lab at Southeast's planned research park along Interstate 55.

The plan would provide $5 million toward the $18.6 million project. Local sources, possibly including a life-science firm, would have to provide the other $13.5 million.

Endowment funds

The governor also proposes to spend $100 million for endowed scholarships, $20 million for endowed professorships and $5 million for an endowment fund to attract and retain life-science companies in the state and commercialize existing research already being conducted in Missouri.

Construction of the River Campus arts school is already under construction on the grounds of a former Catholic seminary overlooking the Mississippi River in Cape Girardeau.

Southeast Missouri State University wants the state to ante up $17.2 million to go along with $4.6 million previously appropriated by the legislature to help fund the nearly $50 million project.

Blunt unveiled a plan this week that doesn't include funding for the River Campus project.

But Kinder, Lipke and Cooper embraced Blunt's proposal to sell MOHELA but added that the River Campus project should be included in the higher education projects that would be funded by the transaction.

Cooper said Southeast student loans are handled by the state-loan authority. "Southeast is a key user of this money," he said. It only makes sense that Southeast should benefit from any sale of the loan authority, he said.

mbliss@semissourian.com

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