Missouri Governor Jay Nixon recently suggested that public universities throughout the state offer up to $100 million in interest-free loans to the state, reports Inside Higher Ed.
Nixon claims that the loans would benefit colleges because the money would be used to fund higher education initiatives, and would reduce the likelihood of cuts to federal funding. Five universities have been approached, including the University of Missouri, which has been asked to lend the state $67 million. Missouri State University would be expected to contribute around $13 million. According to the Post-Dispatch, the loans would avoid cuts to federal education funding by as much as 13 percent.
"It's going to be a challenging year, and we are looking at lots of options," Linda Luebbering, Governor Nixon's budget director, told the newspaper. "This is just one concept we're thinking about."
Although the proposals have drawn criticism from politicians throughout the state, students may benefit from the plans. If budget cuts were to be introduced, student loans and merit-based financial aid, such as scholarships, could be affected.
If you're thinking of filling out a college application, make sure to do some research into what scholarships are available. Merit-based aid packages like scholarships can really help keep the cost of earning your degree down.