ST. LOUIS, MO -- (MARKET WIRE) -- February 15, 2007 -- The Higher Education Loan Authority of the State of Missouri (MOHELA) received from Liscarnan Solutions, LLC, the independent financial advisor reviewing the Cooperation Agreement, to implement the Lewis and Clark Discovery Initiative, cautionary statements warning of the potential financial impact of recent federal budget and legislative proposals on the Higher Education Loan Authority of the State of Missouri (MOHELA). In response to Liscarnan Solutions' statements, MOHELA's Chief Financial Officer, Scott Giles stated, "At this point these are just proposals." In reporting this development to the Board on Wednesday, Giles explained, "The legislative process in Congress has numerous steps remaining with a diverse range of outcomes. MOHELA staff and our industry partners are already monitoring and evaluating each of these proposals."
MOHELA's Executive Director, Raymond H. Bayer Jr., recently informed the Board that MOHELA already has $210 million set aside in the LC Cooperation Agreement Reserve Fund. Bayer explained "the Cooperation Agreement calls for $210 million in upfront funding and these funds are in reserve waiting to be disbursed." Bayer further explained that "we have always maintained that the subsequent twenty-four $5.8 million quarterly installments would only be disbursed if making such installments did not threaten the financial viability of MOHELA or MOHELA's ability to continue to provide the same low interest rates and loan forgiveness programs. At this time, nothing has changed, and I remain confident that MOHELA will be in a position to continue making the quarterly installments of $5.8 million."
MOHELA is one of the largest student loan companies participating in the nonprofit secondary market sector in America and is a leading holder and servicer of student loans with more than $5.8 billion in assets and loan purchase activity in excess of $1.5 billion per year. MOHELA advances its benevolent mission of eliminating barriers for students so they can access higher education through local, regional and national partnerships with a variety of educational and national partnerships with a variety of educational and financial institutions.
Contact Information: For additional information, contact: Will Shaffner Office 636-532-0600 x3430