MOHELA allowed to offer own loans

JEFFERSON CITY, Mo. (AP) -- The state higher education loan authority would be allowed to originate loans directly to students under legislation headed to the governor.

The bill allows the Missouri Higher Education Loan Authority to offer federal Stafford loans, but not more than 10 percent of the total federal loans given to Missouri students. Last year, about $200 million was issued for federal loans in Missouri.

The Chesterfield-based loan authority generally buys the student loans offered by banks and other lenders.

But permission to offer its own loans was part of an agreement in which the authority sold part of its assets to pay for college construction. Bill supporters say it's needed for the student loan agency to stay in business.