A MOHELA of a Deal

Governor Blunt has announced a proposal that would result in the sale of the state's Missouri Higher Education Loan Authority (MOHELA) using the proceeds to fund endowments and capitol improvements. In true Democrat fashion, the baseless attacks were launched in advance of the Governor's announcement. Their attacks have nothing to do with the fact that MOHELA has been a Democrat controlled organization I'm sure.

The Democrat's main attack is that Governor Blunt has been in "secret" negotiations with SallieMae, the country's largest student loan organization. Their proof? Apparently some contributions from SallieMae officials have shown up on campaign finance report. Evidence of secret negotiations? None. Good thing the Democrats don't let facts get in the way of an attack.

The Democrat's also claim that interest rates for student loans will go up. They use a letter from the Pennsylvania HELA as proof. This would be more of a concern if MOHELA originated loans but they don't. MOHELA buys loans at the interest rates they are issued. If MOHELA is not around, the interest rates on originating loans will not go up.

To hear the Democrats talk, without this pure as the driven snow organization, student loans in Missouri will go to hell in a handbasket. Hmmm.

Do you think the Democrats know that MOHELA uses the money collected from students to pay the 30 something CEO of MOHELA well over $300,000? Rumor has it he also had a driver that chauffeured him around and some other pretty hefty benefits. Oh yeah, the Holden majority appointed board fired the CEO last week for insubordination.

Student loan interest proceeds are also being used to pay Quentin Wilson, former Holden Cabinet member, former Holden Director of Revenue, former Holden sponsored Commissioner of Higher Education, who is the director of marketing (and now acting CEO) a minimum $150,000. Don't know if he got a raise to temporarily be the CEO.

Aside from just two examples of high paid staff, MOHELA used money collected from students to build one of the nicest buildings in the Chesterfield Valley area.

Apparently there is some controversy about how the proceeds are to be spent but the basic premise appears sound. The legislature should make sure that the sale will not negatively impact students, that the state receives the maximum from the sale, and that the proceeds are used wisely -- don't spend one time funds for on-going purposes.

Finally, it is refreshing to see that we now have a state government that is proactive and not afraid to challenge the status quo. This is exactly the kind of thinking our state needs to move into the 21st century.