VSAC Vermont Parent Advantage Loans

A fixed-rate loan for parents helping to finance their student’s undergraduate or graduate education.

VSAC Vermont Parent Advantage Loans

If you need help paying for your child’s undergraduate or graduate education, the VSAC Vermont Parent Advantage Loan may be a good option for you. This loan offers a fixed-interest rate as low as 5.8% APR for applications received through May 9, 2018; the option to cancel your loan if the unthinkable happens; and access to an Advantage Loan Coach for ongoing support and personalized counseling as you prepare for repayment.

Are you applying for a 2017-2018 loan? Review the details in the tabs below and begin your application when you're ready. If you’d like to consider the option of cosigning your student’s loan, you may also want to learn about VSAC’s Vermont Student Advantage Loan

Will you need a loan for the coming academic year? Applications will be available in mid-May. Sign up below to receive rate info. 

If you have additional questions, call your VSAC Advantage Loan Coach at 800-226-1029 (Monday – Friday 8:00 a.m. to 4:30 p.m.). 

APPLY NOW FOR 2017-2018 OR CHECK EXISTING APPLICATION

SIGN UP FOR VSAC'S 2018-2019 LOAN RATES

VSAC VERMONT PARENT ADVANTAGE LOAN ELIGIBILITY

To apply for the Vermont Parent Advantage Loan…
The parent borrower must be:

  • The biological, adoptive, or step-parent of the undergraduate or graduate student
  • Able to meet VSAC credit requirements

and:

  • A U.S. citizen or eligible non-citizen
  • Not in default on an education loan

The student must be:

  • A Vermont resident, or
  • From another state attending college in Vermont

and:

  • Enrolled at least half time at an eligible postsecondary school
  • A U.S. citizen or eligible non-citizen
  • Eligible for federal student aid. The student must file a FAFSA (Free Application for Federal Student Aid). 

VSAC VERMONT PARENT ADVANTAGE LOAN REPAYMENT OPTIONS

With the Vermont Advantage Parent Loan, you choose your interest rate, based on the repayment option that works best for you. You may not change your repayment option once you submit your loan application. After your interest rate is set, VSAC cannot alter your loan terms.

NOTE: Current interest rates are for complete applications received through May 9, 2018.

Vermont Parent Advantage Loan

Less expensive option

More expensive option

Immediate: Start principal and interest payments right away

 

  • Fixed interest rate of 5.80% (APR of 5.80% to 6.58%)
     
  • First monthly payment due within 45 days of the final disbursement to the school
     
  • Less expensive option over the life of the loan (lowest interest rate and you begin paying back principal sooner)

 

Delayed: Begin repayment 12 months after loan is fully disbursed
 

  • Fixed interest rate of 6.95% (APR of 6.91% to 7.61%)
     
  • First monthly payment due within 12 months plus 46 days of the final disbursement to the school
     
  • More expensive option over the life of the loan

 

 

Tip: You’ll pay less over the life of your loan if you pay as you go. Full or even interest-only payments can go a long way in reducing the overall amount you pay back.

 

LOAN REPAYMENT TERMS

  • The length of the repayment is determined by the loan amount:
    • 10 years for loans up to $9,999
    • 15 years for loans of $10,000 and above
  • Payments are required monthly. There are no prepayment penalties.
  • Any outstanding interest is added to the principal (it is "capitalized") when the loan enters repayment.
  • Up to 36 months of hardship forbearance is available as determined at VSAC’s discretion. 
  • Repayment periods cannot be extended beyond the original term.
  • Loan debt is canceled completely if the parent or student dies or becomes totally and permanently disabled.

VSAC VERMONT PARENT ADVANTAGE LOAN AMOUNTS

With the Vermont Parent Advantage Loan, you choose the amount you want to borrow for each academic year. Your student’s school will certify eligibility for the loan amount and schedule disbursements based on your student’s enrollment period.

  • Minimum loan amount: $200
  • Maximum loan amount: Up to the cost of your student’s education, less any other aid, as determined by your financial aid office

Applying for financing for the full academic year has benefits:

  • Saves you time
  • Reduces paperwork and correspondence
  • Prevents delays in your subsequent disbursements
  • Minimizes credit bureau inquiries

Tip: Be sure to keep track of the loans you are taking out as you go along, especially if you choose to postpone payments. Remember: 4 years add up quickly.  

MONTHLY & LIFETIME LOAN PAYMENTS

The amount you’ll pay each month—and over the life of the loan—will vary based on your credit history and the repayment option you choose (which determines your interest rate) as well as the amount of your loan. The rate is fixed for the life of the loan and will not vary according to market conditions.

To give you an idea of monthly—and lifetime—payments, here are examples of interest rates, fees, and APR for a $10,000 Vermont Parent Advantage Loan for the 2017-2018 school year. 

NOTE: Current interest rates are for complete applications received through May 9, 2018.

Repayment Option*

Interest Rate

Fee

APR

Finance Charge

Monthly Payments

Total Amount Paid

Principal and Interest Payments with:

Excellent Credit

5.80%

0%

5.80%

$5,141.60

180 @ $84.12

$15,141.60

Better Credit

3%

6.26%

$5,441.60

Good Credit

5%

6.58%

$5,641.60

Delayed Payments for 12 months with:

Excellent Credit

6.95%

0%

6.91%

$7,436.60

180 @ $96.87

$17,436.60

Better Credit

3%

7.32%

$7,736.60

Good Credit

5%

7.61%

$7,936.60

 

 

REPAYMENT ASSUMPTIONS

  • An origination fee, when applicable, is deducted from the loan disbursement(s).
  • Loan repayment term is 180 months and begins when full payments are due (for loans approved for less than $10,000, the term is 120 months).
  • Two equal disbursements of $5,000—in September and in January—and outstanding interest is capitalized at the final disbursement for the immediate repayment option. For the delayed payment option, repayment begins 12 months from the final disbursement and interest is capitalized.
  • All payments are made on time. Examples are estimates.

* Each repayment option is subject to funds availability. Funds will be awarded on a first-come, first-served basis. Interest rates for delayed repayment loans are higher than interest rates on immediate repayment loans and result in a higher cost of borrowing. Interest begins accruing after each loan disbursement.

You can get started with your VSAC Vermont Parent Advantage Loan application in 2 easy steps:

  1. Complete the online application and provide your e-mail address.
  2. VSAC will notify you of the next steps, and you can check your existing application online.

The application can be completed in just a few minutes. Allow at least 2 weeks from when you submit your application to when the funds will be ready to be sent to the school.

NOTE: Current interest rates are for completed applications received through May 9, 2018. Interest rates and applications for the coming academic year will be available in mid-May.  

WHAT YOU’LL NEED TO COMPLETE THE ONLINE APPLICATION

You as the parent borrower will need to provide:

  • Your:
    • Date of birth
    • Address
    • Citizenship status (Resident Alien ID # if applicable)
    • Driver’s license state and number
    • Social Security Number
    • 2 personal references *cannot use the student
      • name
      • address (references must live at separate addresses)
      • phone
  • Your student’s:
    • Full name
    • Date of birth
    • Permanent home address, including state of residency
    • Driver’s license state of issue
  • School and loan information, including:
    • The name of school the student will be attending
    • The requested loan amount
    • The approximate loan period for which you are requesting the loan (month/year)