ST. LOUIS (CN) – In a sign of hard times, Missouri’s student loan authority – MOHELA – is reporting a $12.4 million loss last year, its first financial loss in the loan agency’s 27-year history. more
MOHELA executive director Raymond Bayer Jr. said the loan authority lost $12.4 million in the last fiscal year and has ended its private loan and loan consolidation programs, which could make it more costly and difficult for some Missourians to pay for their education.
MOHELA laid off 16 of its 271 employees last week and has lost 23 more jobs through attrition in the past 10 months. Bayer said the bulk of MOHELA’s business – student loans and PLUS loans for parents – will remain unaffected.
In more depressing economic news, the U.S. Labor Department reported today that employers slashed 63,000 jobs nationwide in February.