December 20, 2006

Engineering students might be eligible for the forgiveness of some of their student loan balances under a new program announced yesterday by the Missouri Higher Education Loan Authority.

Students who qualify might be able to reduce loan balances by as much as $3,500 for college freshmen enrolled in a higher education pre-engineering program for the 2007-2008 school year.

University of Missouri-Rolla Chancellor John Carney said the program might help address a critical national problem: the shortage of engineering talent.

To be eligible for the loan forgiveness plan, students must obtain the loans through MOHELA, a state-established agency based in Chesterfield that services low interest Stafford loans.

The loans also must be originated by participating lending partners. A list of participating lenders includes the Bank of America, Commerce Bank, smartFUNDS, St. Louis Community Credit Union, UMB Bank, U.S. Bank, Vantage Credit Union and Security Bank of Kansas City.

Students must meet satisfactory progress in pre-engineering coursework to qualify. Progress must be verified by the university’s financial aid office and registrar.

In a prepared statement, Gov. Matt Blunt praised the program because it supports a recommendation of the Missouri Math, Engineering, Technology and Science initiative, a task force Blunt established to increase the number of math and science students.

The loan forgiveness plan is underwritten by tax-exempt bonds authorized by the state Department of Economic Development. According to a statement released by MOHELA, the schools that helped develop the program include the University of Missouri-Columbia, UM-Rolla, St. Louis University, Washington University and St. Louis Community College. The statement also said MOHELA reserves the right to modify or eliminate the borrower benefit in the future.

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