Thursday, April 26, 2007
Contact: Jessica Robinson, 573-751-0290
Blunt Commends MOHELA for Forgiving $4.6 Million in Student Loans
Loan Agency’s Action Will Assist More Than 9,300 Students
JEFFERSON CITY–Gov. Matt Blunt today highlighted the Missouri Higher Education Loan Authority (MOHELA) action to forgive a portion of more than 9,300 students’ loans. Blunt said he is pleased that MOHELA remains in a position of financial strength as his Lewis and Clark Discovery Initiative moves through the General Assembly. The governor’s Lewis and Clark Discovery Initiative would provide $335 million in funding from MOHELA for new state-of-the-art learning centers for Missouri students.
“I am pleased that MOHELA has taken this action to assist students,” Blunt said. “This announcement reinforces the fact that MOHELA is in a position of financial strength as it works to provide competitive loans, generous forgiveness programs and set aside funding to offer Missouri students access to state of the art learning facilities and up-to-date classroom technology.”
MOHELA announced they will remove $500 from more than 9,300 freshman Pell Grant recipients’ loans. The most recent benefit will add up to more than $4.6 million in loan forgiveness.
This year Blunt recommended the state more than double funding for needs based scholarships to provide thousands of middle class families access to scholarships every year. His proposal would create the Access Missouri Scholarship to combine the state’s two needs based scholarship programs into one new program called Access Missouri. The program offers a scholarship solution that will level the playing field for all applicants and ensure that Missouri’s neediest students receive aid. Access Missouri will also make it easier for Missouri families to plan for college because the scholarship will be more predictable. Blunt’s recommendation would provide a substantial increase in needs based scholarship funding taking the current program from $27.5 million to more than $72.5 million.
In addition, the governor has recommended $40 million in new funding for colleges and universities and a three year plan that increases funding by more than $110 million.