AG Nixon announces MOHELA public hearings

Missouri Attorney General Jay Nixon Feb. 3 announced that his office will hold a series of public hearings throughout the state to discern public opinion on the proposed sale of assets by the nonprofit Missouri Higher Education Loan Authority. Under the proposal, a subsequent transfer of $450 million in sale proceeds would be made to the state government.

“Many people have questions about this proposed sale and how the proceeds would be used, because the purpose of MOHELA is to make higher education more accessible and affordable for all Missouri citizens,” Nixon said in a news release.

The first public hearing was scheduled for Feb. 9 in St. Louis.

Nixon noted that questions are not only coming from students and their parents, but also from a bipartisan group of legislators who have expressed concerns about the proposal's legal uncertainties.

“There has been a troubling lack of transparency in what has been presented to the public to date, and the lack of openness has only led to more questions,” Nixon said. “The public really needs to see what is taking place.”

As attorney general, Nixon acts as steward for nonprofit assets in the state. He said his review will focus on ensuring that any sale would be as a result of a fair and open process, that a fair price was received for the assets sold and that proceeds from the sale would be used appropriately to further MOHELA's mission. MOHELA was created by the Missouri General Assembly in 1981 for the purpose of making low-interest loans available to all Missouri citizens.

“These three Ps - process, price and proceeds - are the guiding principles of the sale for any nonprofit assets, and public hearings are an important part of that,” Nixon said, noting that his office held such hearings in the $1 billion sale of the Health Midwest system in Kansas City and the $350 million sale of the hospital at St. Louis University.

Details on future MOHELA public hearings will be announced soon. When dates and locations are announced, Nixon's office will provide information about how public input can be provided.

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