UHEAA Offers Best Consolidation Rate Guarantee

    As borrowers consider consolidating educational loans while trying to anticipate the direction interest rates may go in July, the Utah Higher Education Assistance Authority (UHEAA) offers some reassuring news.  All borrowers submitting consolidation loan applications that are received by UHEAA before July 1, 2004 will have the option to choose between current interest rate terms and the rate that will be effective July 1st when variable rates on federal educational loans are reset.

    Unless a borrower requests otherwise, UHEAA will hold applications until new rates are determined at the end of May.  If rates decrease in July, UHEAA will process the consolidation loans and make disbursements after July 1, 2004 to take advantage of the lower rates.  If it is determined that interest rates go up in July then UHEAA will promptly process loan applications to take advantage of the current lower rate.  Either way, borrowers are assured of receiving the lowest rates available on consolidation loans in 2004.

    Furthermore, borrowers who are still in grace after July 1, 2004, may request that their application be held until just before the grace period ends.  This will allow borrowers to enjoy the full benefit of the grace period, receive an in-grace interest rate discount and get the new rate on their consolidation loan.

    Any questions related to this Bulletin should be directed to UHEAA Policy and Training at 801.321.7166 or by e-mail to mjohnson@utahsbr.edu.