Sharp criticism of Governor Matt Blunt’s plan to use money generated from the sale of the student loan agency’s assets comes during House debate on the state budget. Democrats accuse Blunt, a Republican, of skirting public input, bullying the board of MOHELA and ignoring state law. Representative Wes Shoemyer of Clarence says the process, alone, raises questions. Democrats contend the plan will increase interest rates on student loans. Governor Blunt has proposed the state use the $450-Million projected to be raised by a sale of half of MOHELA’s assets to fund capital improvements on college campuses, and establish scholarships. House Republicans have proposed more money go into scholarships than capital improvements.