April 2, 2010
Despite changes, Utah still looking to make a difference in student loans
On March 30, 2010, Secretary of Education Arne Duncan held a call with reporters to discuss the recently signed law that makes changes to how student loans are processed.
In the past, Utahs students have worked directly with the non-profit Utah Higher Education Assistance Authority (UHEAA). Starting July 1, 2010, all new federally guaranteed loans will be made directly through the Department of Education.
In a recent Salt Lake Tribune article UHEAA’s Executive Director David Feitz is quoted as saying, “This is the wrong approach for Utah. The jury is still out on whether the Department of Education can handle billions of dollars of student loans on a long-term basis.”
Under the changes to student loans, private contractors will be hired to service the loans. UHEAA is confident it can win a contract as a student loan servicer. UHEAA has a history of excellent service and low default rates on their loans. Their default rate 2.1% this year, the best in the nation. “The inference is you go where the best service is and the best service is locally provided,” Feitz said.
When asked on the call, if agencies like UHEAA will be allowed to service loan, Secretary Duncan said, “that’s absolutely a possibility. I don’t foresee any conflict there.”
To read the full Tribune article, visit: http://www.sltrib.com/news/ci_14789463Posted by: Brett Lutz