Eligible Borrowers Should Consolidate Before Rates Increase

As borrowers consider consolidating education loans amid projections of increased interest rates in July, Utah Higher Education Assistance Authority (UHEAA) offers reassuring news. All eligible borrowers submitting consolidation loan applications that are received by UHEAA before close of business (5:00 p.m. Mountain Daylight Savings Time) June 30, 2006, will be able to lock in current interest rates before they increase on July 1, 2006.

Student borrowers whose applications are received by June 30, 2006 and are still in grace after June 30, 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 the in-grace interest rate discount and thus, get the lowest possible rate on their consolidation loans.

Borrowers must meet one of the following requirements to receive a Federal Consolidation Loan from UHEAA:

• Currently have at least one loan guaranteed by UHEAA, or
• Have attended an eligible Utah institution of higher education, or
• Be a Utah resident

UHEAA also requires a minimum of $1,000 to consolidate for student borrowers who have graduated, withdrawn or otherwise left school.