Aug 7, 2008 9:29 am US/Eastern
Patrick Has Plan To Save Student Loans
BOSTON (AP) ―
Gov. Deval Patrick is asking the state pension fund and major universities to help bolster the student loan market.
Patrick wants the pension fund to invest $50 million and universities to invest millions more to buy portions of a $425 million bond sale the Massachusetts Educational Financing Authority plans this month.
The agency would use the proceeds to finance student loans.
MEFA previously said it would be unable to provide student loans for this school year because of turmoil in the nation's credit markets.
Patrick tells The Boston Globe his plan is a "sound investment."
State Treasurer Tim Cahill, chairman of the state pension board, says he will consider Patrick's plan. Spokesmen for Harvard University and the University of Massachusetts also say they will consider the request.
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