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Frequently Asked Questions

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New Loans

How do I apply for a VSAC Student or Parent Loan?

It’s safe and easy to apply online! Get started here.

Why do I need to create a MyVSAC profile to start a loan application?

Your security is important to us. To project your privacy, we require all loan, grant, and scholarship applicants to enter their private data behind a secure portal.

How long does the online application take? When should I apply?

It takes just a few minutes to complete the application! However, there are several additional steps in the process. You should allow at least 2 weeks from when a completed application is submitted to when the funds are ready to be sent to the school.

You may check your application status and complete any necessary steps through MyVSAC.

What information will I need to complete my online application for the VSAC Student Loan or Parent Loan?

Great question! It’s good to be prepared before you start the application. In the "Get Started" section of our Ready to Apply page, you'll find a complete list of what you’ll need. 

What is the purpose of a reference?

A reference is someone you have known for at least 3 years who you will always be in contact with. If you move and forget to notify VSAC of your new contact information, we will contact your reference to see if they are able to provide us with your new information.

What is the “loan period”?

The loan period is the enrollment term for which the loan is being borrowed. A typical, full year, loan period is August through May.

How much can I borrow?

You can borrow up to the cost of attendance minus any other aid, as determined by your school’s financial aid office.

You don’t have to borrow the full amount that you're eligible for—we recommend that you borrow only what you need! Remember: All loans will need to be repaid, with interest.

Can the loan be used for living expenses?

The loan can be used to cover the cost of education minus any other financial aid. Please contact your school’s financial aid office to confirm what is included in your total cost.

How do I know when my loan is approved?

Once the loan is approved, VSAC will provide the borrower with a Final Disclosure. This disclosure provides an estimated repayment schedule and loan terms as well as details about the borrower’s “Right to Cancel.”

Will the loan money be sent to me?

No, all loan disbursements are sent directly to the school.

When will the school receive the money?

It varies from school to school. The Right to Cancel period begins when the loan is approved—during this time you have the option to cancel or reduce the loan amount. VSAC must wait for this period of time to end before sending money to the school. After the Right to Cancel period ends, the funds are sent to the school on the dates requested by the school.

When are my payments due?

It depends on the repayment plan that you selected on your loan application. The plan you selected determines when payments are due and the fixed interest rate of your loan.

Is there a penalty for making payments early?

No, in fact, we encourage you to make payments, even when you aren’t due as you will save yourself money in the long run!

Can I change my repayment plan later?

No, once you submit your application you cannot change the repayment plan. However, you can choose to cancel your existing application and start over.

Can I increase the loan amount of the application I already submitted?

No, once your loan application is started the requested amount cannot be increased. If you need additional money you’ll need to start a new application.

Do I add to my existing VSAC Student or Parent Loan each school year?

No, a new loan is required each academic year.

Can I still apply if I don’t have a cosigner?

Every VSAC Student Loan requires a cosigner who meets VSAC’s credit criteria. 

VSAC is dedicated to offering a low cost loan option. Requiring a cosigner on the VSAC Student Loan allows us to offer low fixed interest rates.

If you don’t have a cosigner and still need a loan, ask your school’s financial aid office if they can recommend a lender who doesn’t require one. Note, however, that loans without a cosigner requirement tend to have higher interest rates. 

What is my responsibility as a cosigner?

If you're a cosigner, you're equally liable for the loan and expected to make payments, including any late or collection fees, if the student borrower is unable to pay on the VSAC Student Loan. The cosigner is also required to sign all paperwork along with the student borrower.

As a cosigner, you'll also receive billing statements and the loan(s) you cosigned will appear on your credit report.

I want to apply as a cosigner. How do I start a loan application?

Use the link in the email invitation from the student borrower to start your application online. The link will first take you to the MyVSAC login page.

If you've never used MyVSAC, click “Register Now”. After you create a MyVSAC profile, the link will take you directly to the loan application you were asked to cosign by the student borrower.

What if my cosigner is denied?

If your cosigner is denied, you'll need to start a new loan application with a different cosigner.

Can the cosigner be removed?

Yes, cosigner release may be available, upon request, to student borrowers who meet VSAC’s credit criteria after 48 months of active repayment.

Can the VSAC Parent Loan be transferred to the student?

No, it stays in the parent borrower’s name.

Can the loan be used for a different school if I transfer part way through the year?

No, a new loan is required for each school that you attend.

Can I borrow federal education loans through VSAC?

No, all federal education loans are processed through the Federal Direct Loan Program. Please contact your school's financial aid office to determine your next steps to obtain a new federal education loan.

What number do I call if I need more help with my new loan?

You can reach a VSAC loan counselor Monday through Friday, 8:00 am–4:30 pm at 800-226-1029.

How do credit inquiries affect my credit score?

Many people believe that if they shop around for loans, every inquiry into their credit will have a negative impact on their credit score. Not so.

While the FICO scoring formula does take student loan comparison shopping into account, loan shopping during a certain timeframe (30 days is a good rule of thumb, though this can vary), generally will have little to no effect on your credit score. With that said, it's considered good practice to do some comparison shopping before you apply. 

If you’re not offered loan terms (rates & fees, for example) that you expected when you applied for a particular loan, stop your application and ask why. If it's a result of your credit score, see if there's another lender that can offer you a better rate with your score.

For a more comprehensive discussion of rate-shopping and inquiries, click here. Get more information and advice on how to protect your credit score at