Missouri student loan authority ends programs that offered interest rates

Critics say decision stems from plan to use loan authority funds for college construction projects

May 28, 2008

Missouri's student loan authority is ending two programs that gave interest rate breaks to certain borrowers. Critics attribute part of the decision to a controversial state campus construction plan that tapped $350 million from the Missouri Higher Education Loan Authority (MOHELA). But MOHELA points to market forces affecting the whole student loan industry.
Click here to read The St. Louis Post-Dispatch article.

FROM 2007: Despite a legal challenge from student borrowers, a judge has allowed the transfer of $230 million from Missouri’s student loan agency to fund construction projects on college campuses The judge denied a temporary restraining order against the Missouri Higher Education Loan Authority that would have prevented the agency from making a first payment on the construction projects by Friday. The fund transfer is part of Gov. Matt Blunt’s plan to finance $350 million in construction projects at universities in the state. (Kansas City Star)