File No. 34721
This rule was published in the May 15, 2011, issue (Vol. 2011, No. 10) of the Utah State Bulletin.
Regents (Board Of), Administration
Notice of Proposed Rule
DAR File No.: 34721
Filed: 04/26/2011 04:53:53 PM
Purpose of the rule or reason for the change:
This rule outlines lender requirements to participate as an originator of federal student loans in the Utah Higher Education Assistance Authority loan program. Federal law (H.R. 4872) passed by Congress and signed by the President in March 2010 ended the Federal Family Education Loan Program in which private lenders participated. Since lenders, including Utah banks and credit unions, no longer make federal student loans, there is no reason to maintain this rule.
Summary of the rule or change:
This rule is repealed in its entirety.
State statutory or constitutional authorization for this rule:
- Title 53B, Chapter 12
Anticipated cost or savings to:
the state budget:
There is no cost nor savings to any state budget by repealing this rule since this rule only applied to commercial lenders who formerly participated in the federal student loan program.
There is no cost nor savings to any local government by repealing this rule since this rule only applied to commercial lenders who formerly participated in the federal student loan program.
There is no cost nor savings to any small businesses by repealing this rule since this rule only applied to commercial lenders who formerly participated in the federal student loan program.
persons other than small businesses, businesses, or local governmental entities:
There is no cost nor savings to any individual by repealing this rule since this rule only applied to commercial lenders who formerly participated in the federal student loan program.
Compliance costs for affected persons:
There are no compliance costs for anyone as there are no affected persons. Lenders who provided funds for federal student loans can no longer offer those loans due to changes in federal law. Students were directly affected by this law but the repeal of this rule does not require their compliance nor assess any cost to them or the lenders.
Comments by the department head on the fiscal impact the rule may have on businesses:
With the demise of privately-funded federal student loans, there is no purpose in maintaining this rule.
William Sederburg, Commisioner of Higher Education
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:Regents (Board Of)
60 SOUTH 400 WEST
SALT LAKE CITY, UT 84101-1284
Direct questions regarding this rule to:
- Ronell Crossley at the above address, by phone at 801-321-7291, by FAX at 801-321-7299, or by Internet E-mail at firstname.lastname@example.org
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
William Sederburg, Commissioner
R765. Regents (Board of), Administration.
R765-612. Lender Participation.
R765-612-1. Purpose. To establish the lender eligibility requirements for
participation as an originating lender in the UHEAA loan
R765-612-2. References. 2.1 Utah Code Annotated Title 53B, Chapter 12.
2.2 Higher Education Act of 1965, as amended.
R765-612-3. Definitions. 3.1 Originating Lender. A lending institution which
originates Federal Stafford, PLUS, SLS or Consolidation
3.2 Located in Utah. With respect to this rule, a lender
is located in Utah if the lender has an office in Utah where the
lender's full range of products and services is available to
the lender's customers for routine business transactions. An
office established for the sole purpose of collecting student
loan applications is not sufficient to qualify a lender as being
located in Utah.
R765-612-4. Policy. 4.1 To participate as an originating lender in the UHEAA
loan program, a lender must:
4.1.1 be located in Utah;
4.1.2 be an eligible lender as defined by the Higher
Education Act of 1965, as amended;
4.1.3 obtain a six-digit lender identification number
issued by the U.S. Department of Education; and
4.1.4 execute an "Agreement to Guarantee Loans"
4.2 A lender which meets the requirements of 4.1 may make
loans guaranteed by UHEAA to any eligible borrower.
4.3 A lender which participates in the UHEAA loan program
is considered pre-approved.
4.4 By disbursing the loan, the lender acknowledges its
approval of the loan.
4.5 A guarantee issued by UHEAA may be cancelled by the
lender, if the lender does not grant approval of the
4.6 If the lender violates or fails to comply with the
provisions of this policy or the Higher Education Act of 1965, as
amended, the lender will be liable for any penalties, claims,
actions and expenses relating to the violation. In addition, the
lender may be subject to limitation, suspension or termination
under the Higher Education Act of 1965, as amended.
KEY: higher education, student loans Date of Enactment or Last Substantive Amendment: October 19, 2004 Notice of Continuation: October 20, 2006 Authorizing, and Implemented or Interpreted Law: 53B-12-101(6)]
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For questions regarding the content or application of this rule, please contact Ronell Crossley at the above address, by phone at 801-321-7291, by FAX at 801-321-7299, or by Internet E-mail at email@example.com.