UHEAA Borrower Benefits

Utah Higher Education Assistance Authority’s commitment to providing low-cost student loans has saved student borrowers millions of dollars in loan fees and interest. Since 1998, UHEAA borrower benefits have saved students more than $110 million and have helped incentivize on-time repayment.

Passed in September, the College Cost Reduction and Access Act reduced the yield on new student loans. These yield cuts required UHEAA to revise its borrower benefits program.  After a review of market conditions, an analysis of the loan portfolio, and consultation with participating schools, the following borrower benefits have been approved by the UHEAA Board of Directors:

Stafford Loans (For loans first disbursed on or after January 1, 2008)

• No origination or default fees charged to the borrower
• 0.50% interest rate reduction for auto-debit payments
• 2.00% reduction in outstanding principal balance after 48 on-time payments

PLUS Loans (for loans first disbursed on or after January 1, 2008)

• No default fee charged to borrower
• 0.50% interest rate reduction for auto-debit payments
• 2.00% reduction in outstanding principal balance after 48 on-time payments

Consolidation Loans (For loan applications received after October 8, 2007

• 0.25% interest rate reduction for auto-debit payments

UHEAA continues to be an industry leader with its borrower benefits. Because of the turbulence in the student loan market and much uncertainty, borrower benefits may require further revisions in the future. UHEAA will carefully monitor the student loan market and continue to offer the “sweetest deal” possible.

Copyright © UHEAA 2007