Student Loan Holders Sue

9 years 9 months 2 weeks ago August 10, 2007 Aug 10, 2007 Friday, August 10 2007 Friday, August 10, 2007 5:49:03 PM CDT in News
Source: (Copyright 2007 The Associated Press All Rights Reserved.)
JEFFERSON CITY (AP) - A lawsuit by student loan holders seeks to block Gov. Matt Blunt's plan to take money from the state's student loan authority to finance college construction projects. The lawsuit against the Missouri Higher Education Loan Authority claims the agency is violating both its state-mandated mission and its fiduciary duty to students by allowing its money to go buildings instead of better deals for its borrowers. The lawsuit asks a Cole County judge to issue an injunction barring the loan agency from financing out the building plan and to declare it illegal. A law authorizing the deal is set to take effect Aug. 28.

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