Student loans | St. Louis Public Radio

Student loans

Flickr | Shilad Sen

Illinois Attorney General Lisa Madigan is suing student loan company Sallie Mae and its spin-off Navient for consumer fraud, alleging the companies misled borrowers for profit.

Madigan's office began investigating after receiving numerous complaints.

Missouri State Auditor Nicole Galloway
File photo | Jason Rosenbaum | St. Louis Public Radio

An audit of the Missouri Department of Higher Education takes issue with a now-defunct loan program it still oversees.

The Advantage Missouri program paid out a total of $8 million in student loans from 1998 to 2005. The audit finds that $5.2 million of those $8 million have still not been repaid.

This article first appeared in the St. Louis Beacon: WASHINGTON – In a bit of political theater, the Senate deadlocked over rival bills Thursday on student loan interest rates -- setting the stage for backroom talks to prevent a doubling of the rate for new student loans on July 1.

This article first appeared in the St. Louis Beacon: WASHINGTON – If Congress doesn’t take action by July 1, many of the 57,000 college students in Missouri and 337,000 in Illinois who are getting new federal student loans will be saddled with more debt than they had bargained for.

That’s because the interest rates on those loans are scheduled to double – to 6.8 percent, from the current 3.4 percent – if there is no stopgap or permanent fix by then. A temporary fix last year kept the rates at the current level, but will expire at the end of June.