A Missouri judge denied a request on Tuesday for a preliminary injunction that would have frozen the transfer of $230-million from the state’s student-loan agency to construction projects on several university campuses in the state. The governing board of the agency, the Missouri Higher Education Loan Authority, approved the transfer of funds last Friday. But student-loan borrowers, who sued last month to block the transfer, asked the judge to put the deal on ice while the lawsuit is heard.

The plaintiffs have argued that the funds should be spent on lowering borrowers’ costs, not on construction projects.

Judge Richard G. Callahan, of the Cole County Circuit Court, denied the request for the injunction, saying the loan agency needed to offer loans only at a “reasonable” cost, not at the lowest possible cost, according to The Kansas City Star. The $230-million transfer of surplus funds from the loan agency will go toward financing $350-million in construction projects planned by Gov. Matt Blunt, a Republican. The loan agency is scheduled to transfer the first funds by this Friday.

“We were hopeful the judge would put a halt to the proceedings,” said Michael J. Flannery, a lawyer for the borrowers. He said the lawsuit would continue. —JJ Hermes