Coordinating Board for Higher Education Meeting Minutes 02-99

February 11, 1999

The Coordinating Board for Higher Education met at 10:15 a.m. on Thursday, February 11, 1999 at the Capitol Plaza Hotel in Jefferson City. Members present were:

Ray Henry, Chairman
Connie J. Campbell, Vice Chairman
John Bass, Secretary
Marie Carmichael
Lynn M. Ewing, Jr.
Mary Findley
Jim F. Summers, Jr.
Mary Joan Wood

Absent from the meeting was Bryan Cook.

Also attending were:

Kala M. Stroup, Commissioner
Eldon Wallace, Associate Commissioner for Fiscal Affairs
John Wittstruck, Associate Commissioner for Policy Analysis and Data Services
Terry Barnes, Assistant Commissioner for Community Colleges and Technical Education
Joy Casada, Secretary to the Board
Cheryl Kesel, Public Information Officer
Shelly Lamb, Administrative Assistant to the Commissioner
Mary Lauburg, Faculty Fellow
Karen Misjak, Director of Missouri Student Assistance Resource Services
Dan Peterson, Deputy Director of Missouri Student Assistance Resource Services
Rebecca Sommerville, CBHE Intern
Vera Stanojevic, Senior Associate
Dale Swoboda, Research Associate for Fiscal Affairs
Leroy Wade, Director for Proprietary School Certification
Paul Wagner, Research Associate for Fiscal Affairs
Wei Zhou, Research Director

There being a quorum present, Chairman Henry called the meeting to order. A list of guests attending the meeting is attached. (Attachment A)

Opening Remarks

Chairman Henry welcomed those in attendance and thanked them for their attendance and participation in the meeting.

Minutes of the December CBHE Meeting

Mr. Bass moved that the minutes be approved as submitted. Mrs. Wood seconded the motion, and it was unanimously passed.

Report of the Commissioner

Commissioner Stroup welcomed the Missouri Higher Education Loan Authority (MOHELA) Board of Directors to the meeting and introduced Dr. Karen Luebbert, MOHELA Chairman. Dr. Luebbert introduced the following board members who were in attendance: John W. Greer, William W. Zielonko, and later in the meeting, Allen W. Purdy. Mr. John Wild, MOHELA Executive Director introduced the MOHELA staff in attendance: Ann Hollenberg, Joe Wood, Ray Bayer, and Mike Cummins. Mr. Wild reminded the audience that Dr. Stroup, as Commissioner of Higher Education, serves as a member of the MOHELA Board of Directors and that John Bass is the Coordinating Board for Higher Education representative on the Board of Directors.

Dr. Stroup expressed her thanks to Dr. Robert Stein and his staff at the department and Dr. Gary Smith, Director of Admissions and Registrar, University of Missouri-Columbia and to all the sponsors for a very successful transfer and articulation conference that had almost 600 people in attendance. The 1999 Statewide Transfer and Articulation Conference was sponsored by the Council on Public Higher Education, Independent Colleges and Universities of Missouri, Missouri Association of Private Career Schools, Missouri Community College Association, Missouri Coordinating Board for Higher Education, Missouri State Board of Education, and the University of Missouri.

Commissioner Stroup introduced the CBHE interns. They are Courtney Hunter and Rebecca Sommerville from the University of Missouri-Columbia and Erin Danneman from Stephens College.

Report of the CBHE Presidential Advisory Committee

Dr. Marianne Inman reported that the CBHE Presidential Advisory Committee met earlier in the morning and discussed the following items:

• Comparison of FY 2000 CBHE Appropriations Request with the Governor's Recommendations
• Designation of Programs for the Advantage Missouri Program
• Update on the Missouri Commission on the Affordability of Higher Education
• Summary of Pending Higher Education Legislation, including the Missouri College Guarantee Program
• Progress Report on Funding for Results
• Update on Review of General Education
• Update on Revision of Dual Credit Guidelines

Dr. Inman reported that the bulk of the advisory committee discussion had to do with the Summary of Pending Higher Education Legislation, and in particular, the size and composition of the advisory committee. The current statute calls for twenty-two members representing all sectors of higher education in the state. There is legislation pending that would extend the membership to include the president of Linn State Technical College as a member of the committee. Dr. Norman Myers, President of the Missouri Community College Association (MCCA), addressed the advisory committee and stated the MCCA Presidents and Chancellors Council would like to see the presidents/chancellors of all twelve community college districts added to the committee. The discussion ranged on the advisability of a smaller more representative group that might promote more discussion or on a more inclusive group that would bring more presidents to the table. The conclusion reached was that more inclusive is probably better than less inclusive. Dr. Inman indicated that the committee was supportive of adding Linn's president and all the public community college presidents

Comparison of the FY 2000 CBHE Appropriations Request with the Governor's Recommendations

Mr. Wallace commented that the higher education budget has been presented before both the House Budget and the Senate Appropriations Committees. Dr. Henry and Dr. Campbell testified at both hearings. Dr. Henry and Dr. Campbell also discussed the overall role of state support for higher education, and in particular, the problems that institutions encounter with inflationary increases when inflation is just applied to the state appropriations as opposed to the full education in general appropriation.

Mrs. Carmichael moved that the CBHE express its support and appreciation of the Governor's FY 2000 operating and capital improvements recommendations for the Department of Higher Education. She further moved that in the event additional revenues are identified during the appropriation process, they be applied to the original CBHE recommendations. Dr. Campbell seconded the motion, and it was unanimously passed.

Annual Report of Missouri Student Assistance Resource Services (MOSTARS)

Ms. Misjak noted that MOSTARS has three major initiatives. They are: (1) continue to provide universal access to Missouri's system of postsecondary education through existing and new student financial assistance programs and services; (2) target secondary schools with low college attendance rates to inform school administrators, students, and parents of student financial assistance opportunities that are available to access Missouri postsecondary education; and (3) continue to inform the education community of the potential problems related to student loan debt, consumer debt management, and how to prevent loan defaults.

Ms. Misjak reported that MOSTARS currently administers eleven state and federal student assistance programs. Approximately $15.5 million will be distributed to over 10,000 students through the Charles Gallagher Student Financial Assistance Program during FY 1999. The Bright Flight Scholarship Program will deliver $14.8 million to over 7,800 students during FY 1999. Under the Marguerite Ross Barnett Memorial Scholarship Program, $400,000 will be delivered to 205 students in FY 1999. MOSTARS began administering the new Bridge Scholarship Program in which $4.9 million will be provided to approximately 6,020 students in FY 1999. The loan volume guaranteed under the Missouri Student Loan Program increased from $235.7 million to $307.7 million (30.5 percent) from federal fiscal year 1997 to 1998. The MSLP volume is expected to continue to increase in subsequent years. If the 1999 Missouri General Assembly appropriates funding, there will be two new programs that MOSTARS will administer beginning in the fall 1999. They are the Advantage Missouri Program and the Missouri College Guarantee Program. MOSTARS will assist and work with the Missouri State Treasurer's Office in the development and implementation of another new state program, the MOSTARS Higher Education Savings Program. It is anticipated that the new savings program will be operational in the fall of 1999.

Ms. Misjak described the five initiatives currently in place and new initiatives that are planned under the MOSTARS early awareness and outreach activities. Also, several activities are underway that pertain to the default prevention and debt management area. These include the formation of a statewide default prevention and debt management task force and the Administrative Wage Garnishment Program that is administered by MOSTARS. Missouri's cohort student loan default rate continues to be below the national average for the past two federal fiscal years.

MOSTARS offers additional services to its constituents and clients through its Information Center and the national toll free number, the Automated Transfer of Money (ATOM), and the dissemination of information as the result of federal mandates. The information center provides quality customer service by responding to inquiries from students, parents, clients, and the general public in a timely and effective manner. The volume of calls received by the center dramatically increased from July through December 1998 with a total of 16,592 calls. ATOM helps participating schools and lenders to streamline the delivery process of student loan funds by acting as a clearinghouse. The training of federal and state regulatory issues is a service that continues to be increasingly important for MOSTARS to provide to all clients.

Ms. Misjak reported that this has been a busy year for MOSTARS in which new programs and statewide initiatives have been implemented. MOSTARS will continue to work with their three major initiatives; universal access, early awareness and outreach; and debt management and default prevention. MOSTARS programs and customer services continue to provide a greater opportunity for Missouri families to access postsecondary education.

Audit of the Department of Higher Education State Guaranty Student Loan Program, Year Ended June 30, 1998

Ms. Misjak clarified that a portion of the language contained in the agenda item summary needed to be changed. The third sentence of the second paragraph should read: "The interest earned on the restricted reserve account can only be used for default prevention activities applicable to the Federal Family Education Loan Program." The U.S. Department of Education requires an annual financial statement audit of the Federal Family Education Loan Program. This audit is conducted by the Missouri State Auditor's office.

Mr. Ewing moved that the Coordinating Board accept the Missouri State Auditor's Report of the State Guaranty Student Loan Fund for the fiscal year ended June 30, 1998. Mr. Bass seconded the motion, and it was unanimously passed.

Approval of Institutional Participation in the Advantage Missouri Program

Dr. Wittstruck commented that the staff has received institutional participation agreements for the Advantage Missouri Program from 74 Missouri postsecondary institutions who have agreed to follow the guidelines with respect to the implementation of this program. In October 1998 the board designated the cluster of high demand occupations for the first-year of the program; computer technology, advanced manufacturing, and biomedical/biotechnology. Dr. Wittstruck pointed out that the students who are currently enrolled in programs of instruction leading to employment in the designated high demand areas undoubtedly will be the ones that will be the initial participants in the program, program administration and promotion will be provided by MOSTARS and the participating institutions, department heads and faculty engaged in the delivery of these programs need to know that eligibility may begin this fall. It was mentioned that some institutions did not submit their participation agreements in time to be presented at this meeting; therefore those will be brought to the board in April for consideration.

Mrs. Wood moved that the Coordinating Board for Higher Education approve the postsecondary institutions listed in the board book to participate in the Advantage Missouri Program during the first-year of the program. Mrs. Carmichael seconded the motion, and it was unanimously passed. (See attachment B)

Designation of Programs for the Advantage Missouri Program

Dr. Wittstruck stated that Section 173.781 RSMo requires the board to designate professions and skill areas directly related to the occupational areas of high demand, and the degree programs or certificates directly leading to employment in such areas. In October 1998 the Coordinating Board designated computer technology, advanced manufacturing, and biomedical/biotechnology as high demand occupations for the initial implementation of the Advantage Missouri Program. In anticipation that funding for the program will be available for the 1999-2000 academic year, the staff has proceeded with the preliminary planning process with eligible Missouri postsecondary institutions.

The task of designating instructional programs requires a cooperative partnership involving the coordinating board, the academic staff, and the student financial aid staff of each participating institution. Each institution was requested to identify the certificate, associate degree, and baccalaureate degree programs they currently offer that directly lead to employment in the three designated high demand occupational clusters. Once the programs were identified by each institution, CBHE staff reviewed the report of all programs submitted and recommended a broad list of programs that, based on suggested categories within the federally recognized Classification of Instructional Programs (CIP), appeared to address the goals of the program.

The need for shared responsibility for the success of this program will be crucial throughout its implementation and operation. As part of the institutional agreement to participate in Advantage Missouri, institutions certify that the identified programs directly lead to employment in the three designated high demand occupational fields. Participating institutions will also be responsible for certifying the relationship between the designated programs and the high demand occupations at the time of the student's application as well as when the student enters into the required contract with the Coordinating Board. The statute requires the board to review the occupational areas and designated programs of instruction annually.

Mr. Ewing moved that the Coordinating Board for Higher Education designate the academic programs listed in the board book for the initial implementation of the Advantage Missouri Program in FY 2000 if funds for the program are appropriated. Mr. Ewing further moved that the board direct its staff to continue discussions regarding any changes that may be necessary to the listing of programs and provide the board with any revisions to the listing of designated programs and approved institutions for consideration by the board at its April meeting. Mr. Summers seconded the motions, and they were unanimously passed.

Update on the Missouri Commission on the Affordability of Higher Education

Commissioner Stroup presented an update on the Missouri Commission on the Affordability of Higher Education at the CBHE Presidential Advisory Committee meeting earlier in the morning. She announced that Dr. James Olson, President Emeritus of the University of Missouri, and Chancellor Emeritus of the University of Missouri-Kansas City, will chair the commission. Dr. Olson is a very strong civic leader in the state of Missouri and he has a historic perspective from a number of years in the state. The commission will meet on March 1 in Jefferson City.

Update on the Missouri K-16 Coalition

Mrs. Carmichael reported that the coalition has accomplished some objectives during the past year. Under the leadership of Dr. Melvin George, a public forum of key business, education, and government leaders has been established where perspectives on the best way to improve and enhance education are being discussed. Activities of other states concerning K-16 initiatives have been reviewed. By focussing their initial discussion on mathematics in grades eleven and twelve and the first two years of college, the coalition has emphasized the important transition from high school to college within a single academic discipline. The coalition is working with a mathematics technical advisory group that is composed of college faculty and secondary teachers of mathematics. Some of the issues that have been identified by the task force are: (1) developing agreed upon standards; (2) the use of diagnostic testing at all level; (3) incorporating consequences for performance; (4) reviewing certification requirements for new teachers as well as for second endorsements; (5) developing shared responsibility with the CBHE and DESE for the review of teacher education programs; and (6) promoting better communications within and between K-12 and higher education faculty.

When the results of the Third International Math and Science Test (TIMS) were released the coalition issued a press release emphasizing its sense of urgency that average performance by Missouri's students is not good enough to stay economically competitive in a global environment. To date, the coalition has passed two recommendations. One encourages the University of Missouri Board of Curators, the State Board of Education, and the Coordinating Board for Higher Education to work cooperatively by using common data definitions, linking their separate data bases, and developing a common research agenda that can inform future K-16 policy decisions. The second recommendation encourages the identification of individual student strengths and weaknesses at an early age so that intervention strategies can be developed. The coalition has also discussed looking at Missouri's approach to professional development for teachers and to seek ways to ensure that the professional development is a priority and that the programs in the state for professional development are well coordinated and produce meaningful results.

The coalition has set October 1, 1999 as a target date for completion of its report on mathematics. Any recommendations that come from the coalition will be presented to the three sponsoring boards for discussion and action.

Progress Report on Funding for Results

Dr. Stein stated that Missouri is perceived nationally to have a stable and successful Funding for Results program based on careful design, gradual implementation, and considerable continuity. Dr. Stein reported that Governor Carnahan announced that the state of Missouri was one of only four states to receive Governing Magazine's highest grade for state management; a grade of A. Missouri was cited as a leader in the area of managing for results. The board's Funding for Results program continues as a major state initiative. Since its inception, FFR has been designed as a catalyst for systemic change by promoting funding recommendations based on previous planning priorities. The FY 2000 FFR budget request is currently under consideration by the General Assembly. Although appropriation decisions will not be final until the end of this legislative session, CBHE staff has already begun working with institutional representatives to identify ways to improve FFR's effectiveness. FFR institutional representatives agreed that while FFR is having a positive impact continued refinement of the FFR elements for FY 2001 and beyond would be desirable. The staff will continue to work with the FFR Advisory Council in identifying recommended changes for FY 2001 and beyond. Changes to FFR will be a discussion item for board review at the April 1999 meeting and will be presented as an action item at the June 1999 meeting.

Update on the Review of General Education

Dr. Stein announced that Chancellor John Park, University of Missouri-Rolla, has agreed to chair the CBHE Committee on Transfer and Articulation (COTA) replacing Chancellor Eleanor Schwartz. Dr. Stein stated that the General Education Steering Committee (GESC) that was appointed by COTA to lead the statewide discussion and analysis of general education transfer students has met several times. The committee has completed a statewide survey of institutions, asking for the most up-to-date information about their general education programs and has begun reviewing models of general education from other states. The committee presented a report to the CBHE Committee on Transfer and Articulation on January 21, 1999. The report included a recommendation that the CBHE revise Section A.1 of the 1998 Credit Transfer Policy. The GESC also recommended that the revisions to Section A.1 include a rationale for general education and a statement of broad-based goals for general education programs. Another recommendation contained in the report is that once goals are incorporated into Section A.1 of the 1998 Credit Transfer Policy, that faculty at each institution will develop or refine their general education programs to meet the goals contained in Section A.1. The GESC shared a draft process for assuring active involvement of faculty in any consideration of policy changes.

Dr. Stein acknowledged comments made by Dr. Cecilia Lopez, Associate Director, North Central Association of Colleges and Schools, at the 1998 Statewide Transfer and Articulation Conference. Dr. Lopez pointed out seven basic reasons why she felt Missouri was well positioned to take a leading role in the nation in developing a general education policy supported by a competency-based system. They are: Missouri recognizes the importance of general education for the 21st Century; there is a substantial body of research supporting active learning that is performance based; Missouri has a rich history of promoting and implementing dynamic collaboration; Missouri already uses assessment in the evaluation of student learning, for example, Advanced Placement (AP), credit by examination, and prior learning; Missouri has extensive experience with the assessment of learning; Missouri has made a commitment to continuous quality improvement in the state through quality awards that have been given to the state's educational institutions; and this initiative is congruent with the educational quality improvement of accreditation that NCA has initiated.

Update on the Revision of Dual Credit Guidelines

Dr. Stein noted that the responsibility to review and recommend any changes to the board's 1992 Delivery of Dual Credit Courses policy was delegated to the CBHE Committee on Transfer and Articulation (COTA) in June 1998. Dialog about the extent to which the 1992 policy should be changed has been ongoing for the past three years with institutions expressing mixed views about the extent to which the current policy should be changed. COTA appointed an eight-person task force in December 1998 to gather information from institutions and to advise COTA on potential policy changes that would better ensure the portability and quality of dual credit courses. The Dual Credit Task Force has reviewed and analyzed data from other states and updated information on the scope and magnitude of dual credit activity in Missouri. The task force presented an initial report to COTA on January 21, 1999. The report included a list of key policy issues that are being discussed, preliminary summary statements concerning the 1998 scope and magnitude survey, and a recommended process and timeline for revising the 1992 policy. A draft policy will be presented to the board in April and the final version will be presented to the board for action in June.

Mrs. Carmichael expressed appreciation to the task force for its hard work and asked the task force to write into the policy some measures that speak directly to the issue of enforceability.

Report on Advanced Placement

Mrs. Carmichael reiterated that advanced placement (AP), sponsored by the College Board, is a cooperative educational endeavor between the secondary schools and colleges or universities. AP courses are collegiate-level courses taught in high schools by specially trained teachers. On an annual basis students have the option to take a national examination and submit their scores to colleges and universities for credit and/or advanced placement. The College Board provides the curriculum guides and course materials and oversees the national examinations. Nationally, more than 54 percent of secondary schools participate in the program while in Missouri only 29 percent of the high schools have access to AP. The CBHE has expressed a strong commitment for the AP program and has promoted opportunities for AP participation for students in every Missouri high school.

The board established two AP Teacher Development Centers, one at Truman State University and the other at Southeast Missouri State University. As a result of the work of these two centers Missouri's core of AP trained teachers is increasing, the number of high schools that offer AP courses is increasing, and the number of students taking the AP examinations is increasing. Missouri is ranked number one in the nation for student performance by having the highest percentage of its students scoring at 3 or above compared to all the other states. The College Board, in cooperation with the two Missouri AP Teacher Development Centers, formed an AP Advisory Council in October 1997. The major goals of the Advisory Council are to foster increased awareness and understanding of, and participation in, the AP program. Mrs. Carmichael assumed chairmanship of the council in March 1998. Mrs. Carmichael recognized the directors of the two teacher development centers; Dr. Sterling Cossaboom, Southeast Missouri State University, and Dr. Janette Ralston, Truman State University, for their outstanding job performance.

Summary of Pending Higher Education Legislation

In response to a question from Mr. Ewing earlier in the meeting about the status of proposed legislation regarding ATOM, Mr. Wallace reported that clearance to locate a sponsor has been received from the governor's office and the staff will proceed to do so.

Dr. Henry reported that HB 546 would add the president of Linn State Technical College to the CBHE Presidential Advisory Committee. There was extensive discussion in the advisory committee meeting on this matter and indications from the community college representatives that they would like to see their representation revised as well. Dr. Norman Myers, MCCA president, stated that the MCCA Presidents/Chancellors Council would work toward amending HB 546 for that purpose.

Mr. Summers moved that the board endorse HB 546 with an amendment that would add the community college presidents to the CBHE Presidential Advisory Committee. Mrs. Findley seconded the motion, and it was unanimously passed.

Chairman Henry commented that there was discussion in the advisory committee meeting about whether or not this group would be too large to work effectively. If this increased membership becomes legislatively possible, it does not preclude the advisory committee, the staff, and the board from pulling together representatives from the various sectors (MCCA, COPHE, ICUM, and UM) for more in-depth discussions and consideration of issues as they arise.

Chairman Henry commented that he believes the board should take a position on SB 208 and asked Mr. Wallace to review the contents of SB 208.

Mr. Wallace reviewed the contents of SB 208 and described the changes in 208 as it was passed out of committee in the Senate. SB 208 expands the postsecondary option for A+ students to the four-year institutions. It requires the State Board of Education to approve all teacher education programs without review and it removes the independent institutions from the CBHE's authorizing statute. It would prohibit a student from receiving state financial aid if the student's total aid package would exceed expenses. Schools would be responsible for auditing their own financial aid files for compliance and the CBHE would review these audits. As it was passed out of committee in the Senate, the provision regarding the expansion of the A+ option was deleted, as well as the provision regarding the reduction in the state financial aid for students who receive aid in excess of their expenses.

Dr. Henry stated that even though SB 208 may contain some positive aspects it has some negative aspects that are of great concern to the board and would interfere with the board's administration of student aid programs and statutory responsibilities to perform statewide planning functions for higher education. Without CBHE review of the degree programs and off-campus sites, and the monitoring of the administration of student financial assistance programs, the board would not have sufficient information to certify an institution's continued eligibility to participate in the federal student assistance programs. He recommended that the board go on record in opposition to SB 208.

Mrs. Carmichael stated that she feels the board should be expanding the approval process for teacher education programs not removing the approval process as called for in 208. She said the board has a tremendous responsibility to make sure that teachers have the training that they need to meet the challenges in teaching today. Mrs. Carmichael indicated her opposition to that provision.

Dr. Campbell pointed out that another crucial issue is to be anticipating what higher education will look like in the future; particularly with the great surge of proprietary schools emerging that will be out of the educational paradigm of the past, and particularly whole universities may come forward in the for-profit sector which may have schools of education. Dr. Campbell stated that there may be some far reaching unintended consequences of this bill that should be very carefully considered and that she is concerned about.

In response to a question from Mr. Ewing, Mr. Wagner discussed the provisions that remain in SB 208. One of the items remaining is that the State Board of Education shall approve any teacher education program of any institution defined in Section 173.205, the section referring to eligibility for the state grant and scholarship programs. Another part that remains is a change under one of the subsections under the CBHE's authority. The statement currently says if any institution of higher education in this state, public or private, willfully fails to or refuses to follow any lawful guideline, policy, or procedure established according to the CBHE, their status as an approved institution in the grant scholarship programs can be removed. The bill changes that to exclude the private institutions from that paragraph so that private institutions would no longer need to follow lawful guidelines, policies, or procedures in order to participate in the grant and scholarship programs. It also adds a new section under the CBHE statutory authority that reads, "the CBHE shall not restrict any approved private institution of higher education from creating or modifying a course or program of study or adding a new location or from receiving state or federal financial assistance."

Chairman Henry commented that independent institutions report to the board for the purpose of coordinating and providing complete information, and the board reviews and comments. It has been the position of the CBHE from its very beginning in 1974 that the board makes recommendations only for independent institutions in the areas of degree programs.

Mr. Ewing moved that the Coordinating Board for Higher Education go on record as opposing Senate Bill 208. Mr. Summers and Mrs. Findley seconded the motion, and it was unanimously passed.

Report of the Missouri Higher Education Loan Authority

Mr. John Wild, MOHELA Executive Director, and Dr. Karen Luebbert, chairman of the MOHELA Board of Directors addressed the board. Mr. Wild reported that MOHELA was created in 1981 by the Missouri General Assembly to serve as the state's designated secondary market for student loans. MOHELA issues revenue bonds and uses the bond proceeds to purchase student loans from lenders. MOHELA also provides administrative servicing functions for lenders and provides alternative loans for selected categories of borrowers.

The original loans purchased by the authority occurred in 1983 and the authority has been buying loans since their initial purchase. MOHELA currently owns $1.7 billion in loans that include loans they are servicing and loans that are in preparation for purchasing. They have over 200 employees and are located in Chesterfield. MOHELA makes possible a unique partnership between the student borrowers, the schools, and the financial institutions and they consider themselves the mortar that holds the bricks together. They consider themselves a full service secondary market because they purchase loans from lenders that want to sell the loan while the student is still in school, during the grace period or during repayment. MOHELA is currently assisting approximately 200 Missouri lending institutions that offer educational loans to students and/or parents for attendance at a Missouri postsecondary educational institution by providing a variety of services. They also serve 85 to 90 percent of the lenders that guarantee loans under the Missouri Student Loan Program. As the state's designated guaranty agency, the Missouri Student Loan Program also works in partnership with MOHELA on multiple services, products, and programs that benefit students, lending institutions, and postsecondary institutions.

Mr. Wild reviewed services offered by MOHELA. These services include: guarantee processing and loan disbursement services; in-school period loan servicing; loan purchase upon graduation; flexible repayment options; supplemental loan programs; and industry leading borrower benefit programs. Specifically, the borrower benefit programs provided by MOHELA are: primary sponsor of the guarantee fee free IDEALoan, which saved Missouri students over $2 million in fees during 1998; exclusive provider of rate relief, a 1 percent interest rate reduction during repayment; guarantee fee free supplemental loan programs; and a Missouri based customer service center that provided assistance to students.

Dr. Luebbert described some of MOHELA's educational outreach programs. They co-sponsor Rated PG, a statewide newsletter for parents and students that is produced and distributed by MOSTARS. MOHELA also has developed a cooperative partnership with MOSTARS by providing a $1 million Purdy Scholarship Fund which benefits additional students under the state's Charles Gallagher Student Financial Assistance Program. Furthermore, MOHELA awards multiple equipment grants each year that establishes regional college resource centers for Missouri citizens and they are active participants in Minority Educational Access Councils such as the St. Louis Collaborative. Dr. Luebbert stated that MOHELA continually, almost on a daily basis, looks for ways in which they can better serve the students of Missouri and it is seldom that a meeting does not result in some new program that will benefit students and higher education in Missouri. Dr. Stroup thanked the MOHELA Board for their presentation and complimented the board and staff for the cooperative working relationship between MOSTARS and MOHELA.

Revisions to the CBHE Public Policy Book

Chairman Henry informed the board that the sections being reviewed at this meeting are:

Chapter VIII. Contracting for Educational Services
Chapter IX. Missouri Student Assistance Resource Services (MOSTARS)
Chapter X. Proprietary School Certification

Dr. Henry observed that there are a number of different writing styles in the policy book and perhaps revisions from that standpoint should be made at a later date. There were no suggested revisions to the three chapters under consideration at this time.

Information Items

The board received the following information items:

Academic Program Actions
Missouri Student Achievement Study: "Counseling for High Skills"
Annual Report on Campus-based Reviews of Existing Programs-Public Four-year Institutions

Adjournment There being no further business to come before the board Mr. Ewing moved that the meeting adjourn. Mrs. Findley seconded the motion, and the meeting was adjourned at 12:12 p.m.

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Ray Henry, Chairman

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John Bass, Secretary