Nonprofit Lenders, While Helping Students, Help Themselves

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

By PAUL BASKEN

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,...