Senate passes MOHELA legislation

JEFFERSON CITY, Mo. (AP) -- Missouri's college loan authority would gain new powers to make loans to families of K-12 students under legislation passed by the Senate on Wednesday night.

The Missouri Higher Education Loan Authority already can make loans to the families of high school juniors and seniors enrolled in college credit courses, though the agency has not been doing so, said Quentin Wilson, the agency's associate director for access and success.

The bill by Sen. Gary Nodler, R-Joplin, would allow loans to be made for any elementary and secondary student, regardless of whether they are enrolled in college credit courses.

It also gives MOHELA authority to create or fund college preparatory programs, which generally provide guidance to middle, junior or senior high students interested in later going to college.

"We're not trying to step in and meddle in the K-12 education process, but we're trying to provide a supplement to make sure the kids are able to make the decisions early enough to improve their possibility of going to college," Wilson said.

The legislation also would specifically state that MOHELA could offer scholarships -- in addition to loans -- to college students.

Wilson said the agency views that provision as a clarification, noting it already has contributed money toward a financial-need-based state scholarship program.

Wilson said the legislation is not related to a plan backed by Gov. Matt Blunt and the MOHELA board in which the Chesterfield-based loan agency would transfer $350 million over several years to the state for college construction projects.

As part of that money transfer agreement, Blunt's administration pledged to support passage of a bill expanding MOHELA's power to originate a wider variety of loans for college students. There are some loans that MOHELA currently can only purchase on the secondary market. The proposed wider loan origination powers have proved controversial with the banking industry.

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MOHELA lending is SB135

On the Net:

Legislature: http://www.moga.mo.gov