Utah Student Loans

Educate Yourself About Education Loans

The Utah Higher Education Assistance Authority (UHEAA) is the state agency that functions as the clearinghouse for student financial aid. UHEAA provides access to low-cost, low-interest Federal Family Education Loans as well as online financial planning tools, information resources and links for state institutions and participating lenders.

Benefits of Borrowing Federal Loans through UHEAA

Most people may not realize that when state agencies offer to finance federal loans they are utilizing tax-exempt bond monies provided by the state that are not subject to federal taxes. When you eliminate this taxation, the opportunity for deep savings is then passed along to the consumer. This is why so many state agencies vie for customers outside of private lenders. They can offer affordable loans to their state citizens.

Before you even consider alternative student loans you must complete the FAFSA, the application for federal student aid. But the FAFSA, you’ll discover, is a prerequisite for so many other types of college aid. Only when you’ve exhausted federal and free aid should you begin to consider how an alternative loan may offer a solution to your outstanding education costs.

Partnerships with Local Lenders

UHEAA does not influence students to choose specific lenders. In fact borrowers are urged to explore the gamut of loan providers. Compare rates, programs, repayment terms, credit and no-credit loans until you find the federal and private loans that make sense for your financial situation and long term goals.

However, depending upon the lender you choose you may be privy to some of UHEAA’s loan perks, which could include reduced fees and discounted interest rates.

Students and parents may borrow Stafford Loans, both subsidized and unsubsidized, Perkins Loans and Graduate and Parent PLUS loans. Applying is as easy as filling out the online application.

Consolidation Loans and Repayment Arrangements

For student borrowers wrestling with unmanageable debt two options exist: loan consolidation and smart use of a repayment program.

Loan consolidation programs could be useful for borrowers with multiple federal or private loans, but they can be quite costly in the end if not selected wisely. But lenders have devised another more flexible option: an extended repayment plan. While it does not bundle multiple loans, an extended repayment nevertheless lets borrowers extend a loan repayment period up to 25 years, which significantly lowers monthly payments.

If you are even the slightest bit strapped for making your monthly payments, you should explore your options with the UHEAA consolidation loan or the extended repayment.

See the UHEAA website for more details.