No, not a scam, (and BTW, I get nothing out of this, just passing on info). The Utah Higher Education Assistance Authority (the UHEAA) will allow you to consolidate your loans if you meet one of two requirements:
1. You have loans with more than one lender (such as one thru the Dept of Education and one thru Sallie Mae). OR
2. Your loan is held by a UHEAA institution (there is a list on their website of LOTS of lending institutions, some national, some Utah based).

I have been researching this VERY carefully, as DH has 2 student loans, both of which were consolidated already (meaning a bunch of tiny loans were lumped together, but we kept our lenders separate, so we still qualify for this)!! In my research I did find people who had already consolidated and only had one lender who were still able to do this, but I don't know how. I do know that if you or your spouse is in college and you have already consolidated, you can take out a small student loan and qualify to consolidate again.

As many of you may know, once you consolidate, your interest rate is locked in. Even if you try to consolidate more, they just take a "weighted average" of your interest rates and balances, for example, if you owe $10k at 3% and 20k at 5%, your consolidated rate would be $30k at 4.33%, so you don't save money by consolidating.

Here's where UHEAA saves you the BIG MONEY!! If you sign up to have your payment debited automatically from your checking account, they will reduce the interest rate of your loan by 1.25%! Also, if you make 48 consecutive on time payments, they will reduce the interest rate of your loan by 1% more!

So, in the case of the person with $10k in loans at 3% and $20k in loans at 5%, their loan would be consolidated to $30k at 4.33%, then when they sign up for automatic withdrawl, their loan would drop to 3.08%, and then after making 48 on time payments, their payment would drop to 2.08%!!!

Links:
Borrower benefits: http://www.uheaa.org/bbinfo.htm
Application: http://www.uheaa.org/consolidationloanapp.pdf
Home page: http://www.uheaa.org/

Also, check out their Educational Savings plans for your little ones. We have one for Berlin and we love it. We chose the no-fee option and get a tax deduction on our Utah taxes for contributing. It also gives you a place to roll over that Upromise money!!!