Lawsuit filed to stop state MOHELA sale: Diversion of loan proceeds ?misguided.'.(Company overview)

Byline: Terry Ganey And Jason Rosenbaum

Aug. 10--Two former students who used the Missouri Higher Education Loan Authority to help pay for a college education have filed a class-action lawsuit against the agency for breaching its philosophical and fiduciary mission.

Michael McGennis and Aaron Izadi-Moghadam filed the lawsuit in Cole County Circuit Court yesterday against MOHELA and its board. The suit challenges the state legislature's decision to sell off MOHELA assets to construct $335 million worth of new buildings around the state.

The student loan agency was established in 1982 to work with private lenders to issue low-interest loans to …