BENEFITS OF A VSAC STUDENT LOAN

• Competitive fixed rates
• No origination fees
• 3 repayment options
• Choice of 10- or 15-year repayment term
• 0.25% interest rate discount for auto-debit
• Cosigner release option
• Vermont-based financial aid experts to help you

VSAC STUDENT LOAN ELIGIBILITY

To apply for VSAC's Student Loan, the student borrower must be:

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

and:

• An undergraduate or graduate student enrolled at least half time at an eligible postsecondary school
• Applying with a credit-approved cosigner

and:

• A U.S. citizen or eligible non-citizen
• Never defaulted on an education loan
• Eligible for federal student aid. The student must file a FAFSA (Free Application for Federal Student Aid). 

VSAC requires a credit-eligible cosigner for our VSAC Student Loan. The fixed interest rate of the loan is determined by the creditworthiness of the cosigner, as well as by the loan term and repayment option that the student selects when they apply for the loan.

We encourage the student and their cosigner to work together to choose the lowest-cost repayment plan and term that works for both parties.

Here's what you'll need to know:

VSAC STUDENT LOAN REPAYMENT & INTEREST RATE OPTIONS

Your VSAC Student Loan fixed interest rate is determined by the creditworthiness of the cosigner you select, and the loan term and the repayment option you choose when you apply for the loan. Once your loan is in full repayment, VSAC offers a 0.25% interest rate discount to borrowers who enroll in automated debits through VSAC's LoanPay system. The rates shown below do not include the auto-debit discount.

The information below is for loans for the 2023–2024 school year:

• Immediate: Start principal and interest payments right away
  • Fixed interest rate of 4.70% to 6.41% APR
  • First monthly payment due within 45 days of the final disbursement to the school
  • Least expensive option over the life of the loan (lowest interest rate and you begin paying back principal sooner)
• Interest only: Make monthly interest payments while enrolled (at least half time)
  • Fixed interest rate of 6.63% to 7.83% APR
  • First monthly payment of interest due within 45 days of the final disbursement to the school
  • Reduced-cost option over the life of the loan
• Deferred: Begin repayment after at least half-time enrollment ends
  • Fixed interest rate of 7.12% to 8.16% APR
  • First monthly payment of principal + interest due within 45 days after at least half-time enrollment ends
  • Most 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 interest payments can go a long way in reducing the overall amount you pay back.

LOAN REPAYMENT TERMS

• You choose your repayment option (immediate, interest-only, or deferred), and either a 10- or 15-year repayment term.
• 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 24 months of hardship forbearance is available as determined at VSAC’s discretion.
• Repayment periods cannot be extended beyond the original term, other than through periods of approved forbearance.
• Loan debt is canceled completely if the student borrower dies or becomes totally and permanently disabled.

VSAC STUDENT LOAN AMOUNTS & PAYMENTS

With the VSAC Student Loan, you choose the amount you want to borrow for each academic year. Your school will certify your eligibility and schedule disbursements based on your enrollment period.

• Minimum loan amount: $500
• Maximum loan amount: Up to the cost of your education, minus any other aid, as determined by your financial aid office
• Minimum monthly payment amount: $20

Applying for financing for the full academic year has benefits:

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

MONTHLY & LIFETIME STUDENT LOAN PAYMENTS

The amount you’ll pay will vary based on your cosigner's creditworthiness, the repayment option and the loan term you choose, and the amount of your loan. The rate is fixed for the life of the loan and will not vary according to market conditions. Once your loan is in repayment, VSAC offers a 0.25% interest rate discount to borrowers who enroll in automated debits through VSAC's LoanPay system. 

APR/Repayment examples for VSAC Student Loan 2023-2024

Examples exclude 0.25% interest rate discount available at repayment for borrowers enrolled in auto payments through LoanPay.

Assumptions:

Two disbursements of $5000 each in September and January; Principal and Interest and Interest Only payments begin in February. 

Full payments begin for Interest Only and Deferred options in June after four academic years enrolled in school.

Students, taking out a loan in your name? You'll need:

• Your home address and email address
• Your date of birth
• Citizenship (Resident Alien ID # if applicable)
• Your Social Security Number
• Your driver's license state 
• 2 references who have known you for at least 3 years and are not your parents or your cosigner
  • name
  • address
  • phone
• Your cosigner's email address
• Estimated financial aid
• School name
• Requested loan amount & loan period (month/year of school)