SCS SB 967 -- FEDERALLY GUARANTEED STUDENT LOANS

SPONSOR:  Mayer (Kingery)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Higher
Education by a vote of 8 to 0.

This substitute authorizes the Missouri Higher Education Loan
Authority (MoHELA) to originate federally guaranteed student
loans if Stafford loans for students attending schools in
Missouri do not exceed 10% of the previous year's total volume of
the state's Federal Family Education Loan Program.

The substitute contains an emergency clause.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that a combination of more strict
federal college loan laws and the mortgage crisis has influenced
many banks to stop handling student loans.  Missouri is one of
only five states where the secondary loan authority cannot issue
primary loans.  A cap on the loan volume will keep MoHELA's focus
on secondary loans.

Testifying for the bill were Senator Mayer; Ray Bayer, Missouri
Higher Education Loan Authority; and Missouri Bankers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:13 pm