State's Student Loan Sparks Fear in Borrowers

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When Missouri's governor proposed selling the state's student loan operation and using the $400 million in proceeds to fund a campus building boom, the plan was roundly panned and replaced by one in which the student loan agency just pays the government about $400 million, and sells whatever assets necessary to do it.

The governor sees the sale as a chance to build a lot of biomedical research buildings basically for free. Student groups say the demise or weakening of the state student loan system would make student loans more expensive.



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