Approved Federal Loan Consolidation Forms

    The U.S. Department of Education (ED) recently released a Dear Colleague Letter, GEN-00-16, announcing the approval of the Federal Consolidation Loan forms.  These forms replace all previously approved Federal Family Education Loan Program (FFELP) Consolidation Loan forms.  Utah Higher Education Assistance Authority (UHEAA) now has a supply of these new forms available for immediate use.

    As you know, the Higher Education Amendments of 1986 established the Loan Consolidation Program to help borrowers better manage their student loan obligation.  A consolidation loan can lower a borrower's monthly payment by allowing the borrower to combine outstanding loans into a single new loan and repayment plan.  By consolidating loans through the UHEAA, borrowers may qualify for valuable repayment benefits, such as an 1.25 percentage points interest rate reduction for using the automatic withdrawal option and also a percentage point interest rate reduction for making the first 48 payments on time.

    For more details on consolidation loans and UHEAA borrower benefits, see UHEAA's web site at http://www.uheaa.org/.  For additional information on applying for a UHEAA consolidation loan, contact UHEAA's servicer, UNIPAC, toll free at 1-888-486-4722.