Blunt's Asset Sale Has Left MOHELA On the Rocks

Months after the rare completion of one of Matt Blunt's agenda items --the sale of student loan agency MOHELA's assets-- the governor's plan has left the agency teetering on the edge of financial non-viability.  MOHELA has reportedly lost money in each of the last two months and is expected to post a loss again this month.

Blunt and the GOP-controlled legislature had moved forward with the sale even after an independent analysis sought by MOHELA had predicted potential financial pitfalls.  Many pointed at the time to pending federal legislation, which has since passed, that made the MOHELA asset sale look less attractive.  The head of Liscarnan Solutions, which performed the analysis, was quoted saying of that legislation:

"This may call into question several of our conclusions related to both
MOHELA’s ability to meet the funding requirements of the cooperation
agreement and MOHELA’s long-term viability."

Despite the warnings, Blunt went ahead and forced his sale through the legislature despite grave concerns about how it might affect the agency's continuing survival.  It now appears as though many of those fears have been realized.

MOHELA leaders are reportedly slashing to the bone, urging employees to quit, refusing to fill in-house jobs that open because of attrition and even scrutinizing borrower benefits for possible cutbacks.  One insider even provided an illustrative anecdote:­­

The CEO was even seen scouting throughout the entire building, scrounging up every last unused office supply in an apparent attempt to cut down on office supply expenses.

The results of the sale were foreseen by many, but summarily ignored by Blunt, who was hungry for a legislative "victory."  Consequently, the body charged with helping provide access to money for college for thousands of young Missourians is facing mountainous financial hurdles.  Another example of how Missouri can't afford, quite literally, another four years of Governor Matt Blunt.