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Show Student Loans $12 Million In Utah Utah banks have loaned more than $12 million in loans for some 13,282 students stud-ents attending post high school institutions, the State System of Higher Education reported this week. Much of the loan amount had been committed before the banks had assurance that the statutory limit of seven per cent would be lifted. The banks had been urged to make the loans in August by Utah Bankers Association President, Ronald Hanson. The Utah banks committed themselves even though there are better opportunities for returns. "We're delighted," says Dr. G. Homer Durham, commissioner com-missioner of the State System Sys-tem of Higher Education. The banks, which are making ma-king loans to students at seven per cent, now get an additional two per cent :i.-terest :i.-terest for loan service. In turn the State will buy 3 million of the loans made as of July 1, 1969, for which the banks are paying seven per cent. Earlier this year there was some question that the banks would make the loans in view of the high cost of money mo-ney and the seven per cent maximum interest allowed by the government under ils insured loan program. The students securing the loans are not required to be- gin repayment until nine months after graduation or termination from school. The government foots the interest while the student is in school. Thereafter the student pays the interest. |