Nonprofit Lenders, While Helping Students, Help Themselves

By PAUL BASKEN

Questions arise as Congress considers giving the state-based agencies an advantage over their competitors

Janice Frazier, a 56-year-old single mother in Silver Spring, Md., has been struggling to pay back a $7,000 loan that she used to help her daughter attend Tufts University.

The nation's largest lender, Sallie Mae, spent six years ignoring her attempts to negotiate its share of the debt and win a deferment on medical grounds, Ms. Frazier says.

But the Pennsylvania