MOHELA still happy about Lewis and Clark Discovery Initiative
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MOHELA still happy about Lewis and Clark Discovery Initiative

Date: September 16, 2008
By: Joshua Skurnik
State Capitol Bureau

Intro: Despite low figures, MOHELA does not regret the Lewis and Clark Discovery Initiative from 2006 and 2007.

Joshua Skurnik (SCUR-nic) has more from Jefferson City.

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OutCue: SOC  

According to Director of Business Development Will Schaffner,the Missouri Higher Education Loan Association is barely breaking even each month.

Up until last year, the Lewis and Clark Discovery Initiative made MOHELA give part of its equity, normally reserved for supplementing student loans, to support public construction projects throughout Missouri.

Schaffner says the current situation would not be helped if the initiative never passed.

Actuality:  SCHAFF2.WAV
Run Time: 00:13
Description: Two years ago, when ever we sold them, we actually made seven percent, and we could bring that seven percent back into the state of Missouri to fund projects. If we tried to do that today, we wouldn't get any money from it, no one would pay us for those loans.

Schaffner blames fear in investors caused by failing sub-prime mortgages for MOHELA's economic troubles.

Reporting from the state capital, I'm Joshua Skurnik.

Intro: Student Loans are in trouble because of stigma caused by mortgage crisis

Joshua Skurnik (SCUR-nic) has more from Jefferson City

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OutCue: SOC

The Missouri Higher Education Loan Association has trouble finding investors because of the massive amounts of defaults on mortgages in the last year.

Will Schaffner, the director of business development for MOHELA, says investors cannot differentiate between each type of collateral.

Schaffner blames low numbers on investors' lack of confidence in asset-based loans.

Actuality:  SCHAFF1.WAV
Run Time: 00:08
Description: The borrowers are paying them back when they graduate, so they're unlike sub-prime mortgages, because the sub-prime mortgages people weren't paying them back.

The secondary market loan company provides low interest rate loans for students using money made by issuing bonds.

Reporting from the State Capitol, I'm Joshua Skurnik.