Volume 2005 – Issue 26
UHEAA In-School Loan Consolidation Program
The Utah Higher Education Assistance Authority (UHEAA) will offer in-school borrowers the ability to lock in an historically low interest rate through loan consolidation. To qualify for an in-school consolidation loan from UHEAA, borrowers must meet the following requirements:
- Currently have at least one loan held or serviced by UHEAA
- Currently be enrolled at least half time in an eligible institution
- Consolidate at least $7,500 of eligible loans
Borrowers wishing to consolidate while still enrolled must complete an In-School Consolidation Program Request for Immediate Repayment form found on UHEAA’s Web site at www.uheaa.org. This form, in addition to a completed, original Federal Consolidation Loan Application and Promissory Note, must be received by UHEAA prior to the close of business on June 30, 2005. Schools should refer in-school consolidation borrowers to UHEAA Borrower Services at 877.336.7378 or 801.321.7294.
Upon receipt of the In-School Consolidation Program Request for Immediate Repayment form and a completed application, UHEAA will provide a repayment schedule and apply an in-school deferment on the loans it services based on the latest enrollment information. Any accrued interest on unsubsidized loans will be capitalized at the time of consolidation. The Federal Consolidation Loan interest rate will then be calculated according to the current deferment rate. UHEAA will provide a copy of the borrower’s request for immediate repayment to the holders of the borrower’s non-UHEAA loans. It will be the borrower’s responsibility to follow-up with non-UHEAA lenders to ensure those loans are placed in immediate repayment and a deferment has been applied.
It is important to note that borrowers choosing to consolidate while still in school must agree to waive the 6-month grace period that may pertain to each of the Stafford loans being consolidated. Once waived, the grace period cannot be reinstated even if the borrower does not complete the consolidation process. There is no grace period on a Federal Consolidation Loan, but borrowers may retain eligibility for an in-school deferment.
UHEAA offers the following borrower benefits on Federal Consolidation Loans:
- 1.25 percentage point interest rate reduction for automatic payments from a checking or savings account
- 1 percentage point reduction in the interest rate after making 48 on-time payments
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.