Governor Matt Blunt travels to four cities on Thursday to unveil his plans to change the state student loan program. The Governor denies charges by the State Democratic Party that his administration has been in secret negotiations with the now-private company, Sallie Mae, about the sale of the Missouri Higher Education Loan Authority. Blunt does say his administration is considering a change. The value of MOHELA has been estimated at up to $425-Million. Its sale could provide the state with a huge infusion of cash that could be used to pay for college capital improvements, endowments and scholarships. Critics say the price is too high. They say that while the state will receive hundreds of millions of dollars once, college students will pay for the windfall through much higher interest rates on their student loans.
