Category — MEFA

MEFA is a quasi-state agency offering student loans at discounted rates.  Last week it announced that some 40,000+ students would have to seek funding elsewhere.  Credit market turbulence closed its traditional funding sources.  But never fear because Deval Patrick has a plan.

Obama Jr. proposes having the state pension fund and large university endowments, ahem Harvard, pick up some of the bonds.  Enter Tim Cahill.  Our chief money man says investing for social returns sets a bad precedent.  He correctly notes that pension fund managers have a fiduciary responsibility to seek the best returns, not feel good returns.

But guess who Treasurer Tim thinks can pick up the $450 million dollar guarantee?  That’s right—it’s you and me.  The investment isn’t good enough for the state pension system, but nobody cares about the taxpayers, so it’s plenty good enough for us.  Now that Patrick has Cahill’s suggestion as top cover, probably the whole point behind this exercise anyway, our spendthrift governor is sure to push a bill through quickly.