VSAC Offers Payment Relief for Borrowers Affected by Irene
The Vermont Student Assistance Corporation (VSAC) will offer forbearances of up to 90 days to borrowers who have federal or private education loans with VSAC and will have trouble keeping up with their payments as a result of the recent weather disaster.
In addition, due to President Obama’s disaster declaration, VSAC may be able to provide loan relief to some of its borrowers who have defaulted on their federal loans. To be eligible, borrowers must live in the counties designated by the president as eligible for individual assistance.
A forbearance allows a borrower to temporarily stop payments or pay a reduced amount. The borrower is responsible for the interest that accrues on the loan during the forbearance period.
VSAC stopped making new federal loans on July 1, 2010, when the government switched to “direct lending.” VSAC continues to service federal loans made prior to the switch as well as its existing private loan portfolio.
Vermonters affected by the storm who have federal loans with servicers other than VSAC should contact those servicers to explore forbearance eligibility.
For more information, call 800-798-8722.