Higher Education Loan Authority of the State of Missouri

The Higher Education Loan Authority of the State of Missouri, aka the Missouri Higher Education Loan Authority, or MOHELA, is one of the largest holders and servicers of student loans nationwide. Headquartered in Chesterfield, MO, MOHELA’s mission is to “eliminate barriers for students so they can access higher education.” To this end, MOHELA provides student and parent borrowers direct access to higher education loans and resources to help plan for higher education. In addition, MOHELA sponsors interest rate reduction for qualified borrowers, several student loan consolidation plans and loan forgiveness programs.

Today, as a secondary market in the Federal Family Education Loan Program (FFELP), MOHELA services and purchases student loans in cooperation with national and local lending institutions. MOHELA owns and services more than $5.4 billion in student loans and services for other lenders a student loan portfolio in excess of $1 billion.

Contents

History and structure

As a “public instrumentality and body politic and corporate of the State of Missouri,” MOHELA was created in 1981 by legislation signed into law by Governor Christopher S. “Kit” Bond. MOHELA was established to “…assure that all eligible post-secondary education students have access to student loans” (RSMo 173.360). The “authority” is governed by seven board members operating on alternating five-year terms; five of whom are appointed by the Governor of the State of Missouri, subject to the advice and consent of the Senate of the State of Missouri, and two others are representatives from the Missouri Coordinating Board of Higher Education – one of which is a permanent seat to be filled by that agency’s commissioner.

Initial funding to establish operations came from a $65 million bank letter of credit, guaranteed by several of the then members, and was repaid following the issuance of bonds. Since that original issue, MOHELA has generated its own funding from beginning to present day. From its humble beginnings with fewer than ten employees, MOHELA has grown to almost 300 full-time staff members and works with students, schools and lenders in all 50 states.

Income and finance

MOHELA supports its mission and pays operating costs exclusively from revenues derived from its own operations. Net income from student loans is typically between one cent to half a cent on every dollar. MOHELA is able to increase borrower benefit programs and decrease loan interest rates as a result of favorable federal laws and market conditions. With the aid of lender and school partners and the reinvestment of capital into student and family benefits, MOHELA is able to successfully support its mission along with the community of students and adults who would not otherwise be able to further their education.

National recognition

MOHELA was named an "Exceptional Performer" by the U.S. Department of Education in 2006. As one of 18 lenders and servicers recognized nationwide, MOHELA maintains a compliance performance rating of 97 percent or higher in converting federal student loans to repayment, collecting delinquent loans, and filing timely claims with guaranty agencies. In order to maintain this honored designation, MOHELA must meet certain quarterly and annual audit requirements. MOHELA was ranked 12th on the U.S. Department of Education's Top 100 Current Holders of FFELP Loans for Fiscal Year 2005.

Types of student loans owned and serviced by MOHELA

  • Federal Subsidized and Unsubsidized Stafford Loans
  • Federal Perkins Loans
  • Federal PLUS Loans
  • Federal GradPLUS Loans
  • Federal Student Loan Consolidation
  • Private Alternative Loans

External links


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • education — /ej oo kay sheuhn/, n. 1. the act or process of imparting or acquiring general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself or others intellectually for mature life. 2. the act or process of… …   Universalium

  • The United States of America —     The United States of America     † Catholic Encyclopedia ► The United States of America     BOUNDARIES AND AREA     On the east the boundary is formed by the St. Croix River and an arbitrary line to the St. John, and on the north by the… …   Catholic encyclopedia

  • State and Local Affairs — ▪ 1997 Introduction       States continued to be at the centre of national debates on public policy during 1996. The U.S. Congress, reacting in part to successful experimentation by a number of states, enacted a historic welfare reform measure… …   Universalium

  • Community colleges in the United States — In the United States, community colleges are primarily two year public institutions of higher education and were once commonly called junior colleges. After graduating from a community college, some students transfer to a university or liberal… …   Wikipedia

  • Clean Water State Revolving Fund — The Clean Water State Revolving Fund (CWSRF) is a self perpetuating loan assistance authority for water quality improvement projects in the United States. The fund is administered by the Environmental Protection Agency and state agencies. The… …   Wikipedia

  • Oklahoma Educational Television Authority — statewide Oklahoma Branding OETA Slogan The Oklahoma Network Channels Analog: see table below Digital …   Wikipedia

  • motion picture, history of the — Introduction       history of the medium from the 19th century to the present. Early years, 1830–1910 Origins       The illusion of motion pictures is based on the optical phenomena known as persistence of vision and the phi phenomenon. The first …   Universalium

  • Poles in the United States — • Covers the causes and history of the Polish immigration Catholic Encyclopedia. Kevin Knight. 2006. Poles in the United States     Poles in the United States      …   Catholic encyclopedia

  • Modern liberalism in the United States — This article discusses liberalism as that term is used in the United States in the 20th and 21st centuries. For the history and development of American liberalism, see Liberalism in the United States. For the origin and worldwide use of the term… …   Wikipedia

  • Davenport v. Washington Education Association — Davenport v. Washington Ed. Assoc. Supreme Court of the United States Argued January 10, 2007 Decided …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.