Search
Advertisement

Local News

| Digg | Facebook | E-mail | Print
Aug 7, 2008 8:44 pm US/Eastern

Cahill Nixes Pension Investment In Education Loans

BOSTON (AP) ― State Treasurer Tim Cahill says he will not allow state pension funds to be invested in bonds that in turn would be used by a state agency to provide tuition loans to cash-strapped students.

Speaking in his capacity as chairman of the Pension Reserves Investment Management Board, Cahill said a $50 million investment requested by Governor Patrick would not provide the investment return state retirees need.

The Massachusetts Educational Financing Authority announced recently that it would be unable to provide student loans for this school year because of turmoil in the nation's credit markets.

Cahill says he would support the Legislature signing a note of credit guaranteeing the state would repay $450 million in bonds so MEFA can get the money it needs.

A spokesman for Patrick says the governor spent the day discussing his proposal with college and university presidents.

(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

From Our Partners

© MMVIII, CBS Corporation. All rights reserved.