Private Interest vs. Public Good
An interesting aspect regarding Governor Blunt's plan to sell MOHELA, the successful Missouri student loan organization, is the firing of the director of MOHELA, Michael Cummins, for, presumably, his opposition to the plan.
The AP wire has a separate story on the subject. It notes that Cummins hasn't commenting on his firing, but quotes Sen. Joan Bray saying he passed along his misgivings to her the day before he was fired.
Few details are available yet, but the central question can still be debated in the abstract: Will the shift from an agency accountable to the voters who created it to a private entity significantly change things?
Is it wise to unload a program as successful as MOHELA, which controls $5 billion in assets, simply to cover capital-improvement costs? Perhaps we should put some of MOHELA's expertise to work in securing bonds to finance capital improvement bonds.
One thing is clear, opposing the Governor's initiatives is not a path to job security. Cummins, a 14-year vet of MOHELA, will follow former Public Council John Coffman on the employment search. Coffman, a member of the PC's office for 15 years, his last four as its head, was fired in May after he opposed legislation easing restrictions on utilities that he claimed would have hurt consumers. His critics called him a partisan, but now consumers are facing the odd prospect of paying higher rates on gas after installing energy-saving technology designed to save them money such as energy efficient furnaces.
This is perhaps the most short-sighted political move by this disastrous Governor. His program to cash-out MOHELA will provide short-term funds for construction at to the state universities, while limiting middle and working class kids chances of moving up the socio-economic ladder by securing a college degree. Arguably the most effective way to move people from poverty to prosperity is through higher education. MOHELA provides low interest rate and sometimes forgivable loans to Missouri's middle and working class college students, making college a possibility.
Selling this productive asset today forgoes future generations' opportunities. I strongly urge all Democrats to contact their legislators and voice their opposition to yet another reckless move by this irresponsible administration!
Even though this may does not directly affect the sale, I hear that Cummins firing may have been unlawful. Perhaps Blunt should make sure his appointments director knows what he's doing? more to follow on this on my website when i get more details...
Posted by Gregg on Fri., Jan 27, 2006 at 12:48 PMIn addition to servicing low-interest student loans MOHELA has been a wonderful community asset for Missouri. They have sponsored loan fogiveness programs for students who choose to work in underserved communities in certain human services fields. MOHELA has been a regional leader in advancing efforts to extend college access opportunities to all students; especially potential first generation college students. MOHELA's commitment to the students of Missouri is deep and meaningful. To lose the services MOHELA provides would be a real blow to the state.
Posted by S. Clay on Fri., Jan 27, 2006 at 2:00 PMMOHELA is a nonprofit with students' success as its core value.
As the sale of MOHELA is contemplated, let’s not forget the many initiatives MOHELA has pioneered to ensure college access to all college-capable students.
• Last year, MOHELA forgave $8 million in loans during the critical period between freshman and sophomore year when the financial stress of college prompts many students to abandon their pursuits.
• MOHELA has been the catalyst for statewide conversation on college access and has promoted strategies that reach out to high school students who will be the first in their families to go to college.
• MOHELA’s Rate Relief program means more money stays in the pockets of student (and parent) borrowers.
Will a for-profit have the motivation to serve students in such innovative ways?
Going to college ends the cycle of poverty for students and their families. College graduates earn a $1 million more in their lifetimes than high school graduates. Just as importantly, the state of Missouri’s economy hinges on an educated workforce. A one percent increase in the number of 4-year degree holders in Missouri can result in an increase of $1.5 billion in Missouri’s economy.
With federal cuts to student aid on the horizon, and ever-increasing tuition, going to college is getting harder and harder.
MOHELA is a Missouri success story. Is the fast fix of a sale to the highest bidder worth risking the long-term benefits of a better educated Missouri?
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