Student Loan Interest Rates May Soar

1 decade 3 years 1 month ago Wednesday, January 25 2006 Jan 25, 2006 Wednesday, January 25, 2006 10:02:20 PM CST January 25, 2006 in News

Instead of continuing to let a state agency handle the program, Blunt wants to sell the business for $400 million to the private firm Sallie Mae Loans, which might cost students more money.

Thousands of college students will be affected by the possible sale of the Missouri Higher Education Loan Authority, or MOHELA, to Sallie Mae. As a non-profit organization, the State Loan Authority used extra money it collected to provide lower-interest loans for college students.

But, a change in ownership could raise loan interest rates. Democratic lawmakers say privatizing student loans will hurt everyone.

"This is a time in our state's history where we need to be sending more people to higher education and, unfortunately, the governor's plan is going to make that more difficult. It will be harder to get student loan rates, and the rates that you do get will inevitably be higher."

By privatizing student loans, Missouri could spend the money on new campus buildings and life science research at state universities.

"I think the loans are more important just because they're building all the buildings on campus anyways, built into tuition or by donation."

Sallie Mae has tried to buy other state-controlled loan organizations, including one in Pennsylvania. In fact, the Pennsylvania Student Loan Authority wrote to Blunt and other Missouri officials to warn the financial aid market will lose its balance between service and profit, as well as hurt students and their parents.

Gov. Blunt wouldn't comment Wednesday night, but he'll be at the MU School of Medicine on Thursday to explain how his plan will help, not hurt, Missouri higher education.

But, the head of Missouri's student-loan agency is out of a job already, after expressing doubts about selling the agency and putting the money into higher education. MOHELA's board of directors announced Wednesday it replaced Executive Director Michael Cummins immediately. The board also said it voted Tuesday night to cooperate with Blunt in considering proposals to sell the agency's assets.

More News

Grid
List
COLE COUNTY - The Cole County Sheriff's Office said they seized $20,000 in illegal steroids during a traffic stop Sunday... More >>
1 hour ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 1:25:00 PM CDT March 25, 2019 in News
JEFFERSON CITY -Authorities are investigating the cause of a fire at a business in Jefferson City. Firefighters went to... More >>
2 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 12:17:00 PM CDT March 25, 2019 in News
JEFFERSON CITY, Mo. (AP) — The Missouri Department of Revenue is now offering licenses and identifications that comply with stricter... More >>
3 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 10:52:00 AM CDT March 25, 2019 in News
IOWA CITY - In the Regional Finals of the Women's NCAA Tournament, the Mizzou Tigers lost to the Iowa Hawkeyes... More >>
14 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 12:22:10 AM CDT March 25, 2019 in Sports
MOBERLY - A woman was arrested in Moberly Saturday evening for driving while intoxicated with two children in the car,... More >>
14 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 12:02:00 AM CDT March 25, 2019 in News
COLUMBIA - Missouri forward Jontay Porter re-tore his ACL Saturday while rehabbing in Colorado, Mizzou Athletics confirmed to KOMU. ... More >>
16 hours ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 10:21:00 PM CDT March 24, 2019 in Sports
(CNN) -- A triumphant President Donald Trump emerged Sunday to claim "complete and total exoneration" after special counsel... More >>
17 hours ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 9:02:00 PM CDT March 24, 2019 in News
COLUMBIA - Law enforcement agencies are turning to social media to connect with the people they serve. Police departments, sheriff's... More >>
20 hours ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 6:43:00 PM CDT March 24, 2019 in News
SALINE COUNTY - A body was recovered from the Missouri River Sunday afternoon. The Saline County Sheriff's Office said... More >>
21 hours ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 4:50:00 PM CDT March 24, 2019 in News
If you or someone you know might be at risk of suicide, here's how to get help : In the... More >>
23 hours ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 3:35:00 PM CDT March 24, 2019 in News
(CNN) - The special counsel did not find Trump campaign or associates conspired with Russia. "The special counsel's investigation... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 1:05:00 PM CDT March 24, 2019 in News
COLUMBIA - A locally-owned beer shop will close its doors for good on Wednesday. Craft Beer Cellar announced its... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 11:08:00 AM CDT March 24, 2019 in News
(CNN) -- The evacuation of passengers from a cruise ship off the western coast of Norway has come to an... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 10:14:41 AM CDT March 24, 2019 in News
(CNN) — Rescuers are scrambling to rescue about 1,300 passengers and crew from a cruise ship off Norway... More >>
1 day ago Saturday, March 23 2019 Mar 23, 2019 Saturday, March 23, 2019 11:09:00 PM CDT March 23, 2019 in News
MOBERLY — Moberly Police said they have arrested a man who tried to escape from them. According to Moberly... More >>
1 day ago Saturday, March 23 2019 Mar 23, 2019 Saturday, March 23, 2019 8:05:00 PM CDT March 23, 2019 in News
WASHINGTON (AP) — Arkansas-based Tyson Foods is recalling more than 69,000 pounds (31,297 kilograms) of frozen, ready-to-eat chicken strips because... More >>
1 day ago Saturday, March 23 2019 Mar 23, 2019 Saturday, March 23, 2019 6:32:00 PM CDT March 23, 2019 in News
If you or someone you know might be at risk of suicide, here's how to get help : In the... More >>
1 day ago Saturday, March 23 2019 Mar 23, 2019 Saturday, March 23, 2019 4:45:00 PM CDT March 23, 2019 in News
COLUMBIA — Boone County officials have found an elderly man who went missing in Columbia, Saturday. Officials said they ended... More >>
1 day ago Saturday, March 23 2019 Mar 23, 2019 Saturday, March 23, 2019 3:56:00 PM CDT March 23, 2019 in News
Columbia, MO
Broken Clouds 53°
3pm 48°
4pm 49°
5pm 51°
6pm 51°