Which Student Loans are Better for Utah Students?

Plan a Sensible College Student Loan Strategy

In Utah the Higher Education Assistance Authority (UHEAA) is the primary source for college information. If you’re a student or parent consider beginning your quest for student loans with UHEAA.

For student loan information it’s important you have reliable and trustworthy sources; student loans are advertised on every street corner and who knows which one’s best, right?

Starting with Student Loans in Utah

UHEAA will put you on the right track to student loans, beginning with the Federal loan program. Ideally this is your first step, completing the FAFSA (Free Application for Federal Student Aid), the federal loan application. Miss out on this vital step and you lose any chance for this and other types of aid for a full academic year. Why does it affect other programs? Because federal loans are so affordable and safe they are largely considered the most responsible first resort of lending. Right now many other lenders are being squeezed in tight credit markets. Their primary goal is to help students willing to do whatever it takes to avoid putting undo stress on the market, which means going after the easier money—federal money—first. Also, as student loan debt climbs more and more lenders are pressuring borrowers to make private loans a last resort.

The Federal Family Education Loan Program (FFELP) includes:

  • The Stafford Loan is a non-credit loan intended for undergraduate and graduate students. You’ll find a need-based and non-need-based version and many students have loans for both.
  • Grad PLUS Loans are among the most recent additions and in direct response to the growing margin of debt among grad students, especially those in degree intensive studies. Traditionally once they met their borrowing limit for the Stafford Loan they were out of luck for any more federal aid, which pushed debt in this student population into orbit.
  • Parent PLUS Loans offer relief for cash-strapped parents of undergrads. Once your child’s federal loans are disbursed, apply to borrow up to the full cost for the balance remaining on their college bills. This could be a more cost-effective solution compared to the traditional second mortgage or home equity line of credit.

Find out more about the federal loan programs including repayment and interest rates.

Compare Private Loans

Private loans offer little comparison to the value of federal loans. You’ll never find a private loan free of a credit check like the Stafford Loan. That’s why so many students qualify for that type of aid.

Private student loans are common among commercial student loan lenders and many hometown banks. But these are bundled with much higher interest rates and sometimes hidden fees and costs. It’s true many of the federal loan awards are insufficient to cover the full cost for college and private loans are handy, but use them as a last resort. Know into exactly what kind of debt you are jumping.

For more information on student loans for Utah students, visit the UHEAA website.