March 10, 2010
Be Prepared – Changes are Coming to Student Loan Programs
Growing up in Utah, and being a Boy Scout, I often heard the term Be Prepared. That is great advice, even if it is kind of vague. Today, I want to pass on that same advice, with just a little more information. If you are going to college, and need to take out a student loan, be prepared for changes.
On September 18, 2009, the House of Representatives passed the Student Aid and Fiscal Responsibility Act (SAFRA). This bill does many things, one of which is end the Federal Family Educational Loan Program on June 30, 2010. This means that you would no longer be able to get your Stafford or PLUS loan through your bank or credit union. The Department of Education will be the only lender making traditional student loans.
What does this mean to you? You need to pay careful attention to your schools instructions and act on them immediately! Your school will provide you with more information on these changes. If you have already received information about these changes from your school but have questions, please contact the financial aid office on your campus for the most up-to-date information.
In the meantime, UHEAA and its partner lenders will continue to provide you with student loans and the highest possible level of customer service.
If you are interested in a full overview of SAFRA, you can find more information here: http://www.nasfaa.org/publications/2009/ln3221summary092209.htmlPosted by: Brett Lutz