Inappropriate Certification of Loan Applications

The Utah Higher Education Assistance Authority (UHEAA) encourages schools and lenders to adopt internal policies which protect the integrity of the loan certification process. UHEAA recommends schools adopt policies which would prohibit a financial aid staff member from certifying loan applications for themselves, relatives or close friends. While there is no specific regulatory prohibition concerning these actions, establishing such procedures is sound administrative practice and would avoid any appearance of impropriety. UHEAA recommends that all lenders and schools review their internal procedures regarding this matter and make any necessary adjustments.

All inquiries regarding this Bulletin should be directed to the Policy and Training Department at (801) 321-7166.