Story Published:
May 27, 2008 at 1:04 PM CDT
Story Updated:
May 27, 2008 at 1:04 PM CDT
JEFFERSON CITY, Mo. -- Missouri's student loan authority is ending its discounted interest rates. The decision by the Missouri Higher Education Loan Authority comes as student loan agencies nationwide are under increased financial pressure because of changes in federal law and tightening credit markets.
MOHELA Executive Director Ray Bayer says that as of June 1, the agency will no longer provide a 2- to 3-percentage point interest rate reduction for people who pay with automatic withdrawals. He says MOHELA will also stop offering interest rate breaks for students in public service professions, such as teachers, police officers, nurses and social workers.
The changes apply to new loans. People who receive such breaks on existing loans will continue to get them.
