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Nixon questions legality of MOHELA sale

By AP, KWMU

Jefferson City, MO. – Attorney General Jay Nixon is urging a board to reject Governor Matt Blunt's latest plan to use student loan profits for a college construction boom.

Nixon sent a nine-page letter today to the board of directors of the Missouri Higher Education Loan Authority. He says the plan is illegal and could harm students.

The board is scheduled to consider Blunt's plan Friday.

The proposal calls for MOHELA to transfer $350 million to the Missouri Development Finance Board, which would give the money to state colleges and universities for buildings.

In exchange, the state would pledge more than $one billion in tax-exempt bonding authority for MOHELA over eleven years.

The University of Missouri also would consider increasing its use of MOHELA for student loans.

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