UHEAA Offers Best Consolidation Rate Guarantee

As borrowers consider consolidating education loans amid projections of increased interest rates in July, Utah Higher Education Assistance Authority (UHEAA) offers reassuring news. All borrowers submitting consolidation loan applications that are received by UHEAA before July 1, 2005 will have the option to choose between current interest rates and the rate that will be effective July 1st, when variable rates on federal education loans are reset.

Unless a borrower requests otherwise, or the U.S. Department of Education mandates otherwise, UHEAA will hold applications received before July 1 until new rates are announced at the end of May. Should the rates decrease in July, UHEAA will process the consolidation applications and make disbursements after July 1, 2005 to take advantage of the lower rates. If the interest rate increases in July, UHEAA will promptly process the consolidation loans to take advantage of the current lower rates. Either way, borrowers are assured of receiving the lowest rates available on consolidation loans in 2005.

Furthermore, borrowers whose applications were received before July 1, 2005 who are still in grace after July 1 may request that their application be held until just before the grace period ends. This will allow them to enjoy the full benefit of the grace period, receive an in-grace interest rate discount, and get the lowest rate on their consolidation loans.

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