June 15, 2007
Jefferson City, Mo. — Attorney General Jay Nixon wants to remind parents and students of their rights when seeking loans to help pay for a higher education. The national student loan scandal has brought attention to the practices of colleges and lenders, and Nixon says borrowers need to beware of potential pitfalls.
When shopping for loans, Nixon offers these recommendations:
“With the today’s high cost of college, getting financial aid has never been more important,” Nixon said. “Students and parents need to shop aggressively, have as much information as possible and understand their rights when navigating through this complicated process.”
Nixon recently reached an agreement with Washington University in St. Louis that establishes a code of conduct for the school. It forbids the school from receiving any financial incentive for encouraging students to borrow from certain lenders. Nixon’s office continues to investigate student lending practices and is working with lenders and schools statewide to ensure a fair marketplace for student borrowers.
Students and their parents can use a student loan calculator in the Consumer Corner section of Nixon’s Web site at ago.mo.gov. The calculator helps borrowers get a clear understanding of the amount they’ll borrow, interest rates, monthly payments and other factors.
Consumers can file complaints against a college or lender by calling Nixon’s Consumer Protection Hotline at 1-800-392-8222 or visiting ago.mo.gov.