Subsidized and Unsubsidized Stafford Loan Reallocation

    This Bulletin provides an update to guidance on reallocation previously provided in UHEAA Bulletin Volume 99 - Issue 23.

    In general, loans may be reallocated only if the borrower is still attending school at least half time. However, in response to school requests, the Utah Higher Education Assistance Authority (UHEAA) has now determined that in exceptional cases, reallocation may be allowed after a borrower has ceased attending school at least half time. Such exceptions will be based on a review of the merits of the individual circumstances, on a case-by-case basis.

    As always, loans may be reallocated only if the total loan amount does not exceed the amount originally certified by the school. To reallocate loan amounts, schools may continue to use the Reallocation Form previously developed and distributed by UHEAA (copy attached).  Schools should complete the school section of the Reallocation Form and send the form to the lender for completion of the lender section. The lender should then attach a copy of the disclosure statement and send it to the Manager of Loan Delivery Services at UHEAA.

    Questions concerning reallocation can be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.  Questions concerning the Reallocation Form can be directed to Teri Vig at (801) 321-7223.

Attachment
Reallocation Form (pdf)