UHEAA Board Approves Borrower Benefits
Revised March 27, 2006 by UHEAA Bulletin Volume 2006, Issue 18

On March 23, 2006 the Utah Higher Education Assistance Authority (UHEAA) Board of Directors approved borrower benefits for FFELP loan borrowers as outlined below. In following the mission and goals the Board previously outlined, UHEAA will continue to offer borrower benefits that are among the nation’s best.

For loans first disbursed on or after May 1, 2006, borrowers may receive the following benefits:

• Origination Fee Benefit – Stafford – Will reduce from 3% to 2% on Stafford loans effective July 1, 2006 in accordance with the provisions of the Higher Education Reconciliation Act of 2005. Please note, however, the payment of origination fees on Stafford loans by UHEAA according to the schedule released in UHEAA Bulletin Volume 2006, Issue 15. This will be an upfront benefit now instead of a credit at the time the loans go into repayment.
• Origination Fee Benefit – Parent PLUS and Graduate/Professional PLUS– No change. Credit equal to the amount of the origination fee is applied to loan balance when loan is sold to UHEAA.
• Automatic Payment Benefit – Stafford and Parent PLUS and Graduate/Professional PLUS – No change. 1.25% rate reduction.
• Automatic Payment Benefit – Consolidation– Reduced from 1.25.% to 0.50% rate reduction.
• Timely Payment Benefit – Stafford and Parent PLUS and Graduate/Professional PLUS – No change. 2% rate reduction after 48 on-time payments.
• Timely Payment Benefit – Consolidation – 1% rate reduction after 36 on-time payments
• Guarantee Fee Benefit – No change. 1% fee paid by UHEAA. (Note: This fee will be called the Default Fee beginning July 1, 2006.)
• Federal PLUS Loan Benefit – Interest credit is eliminated effective July 1, 2006 for both Parent PLUS and Graduate/Professional PLUS loans.

Payments are considered timely if received within 15 days of the due date.

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.