VSAC Parent Loan Details 

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

Benefits of a VSAC Parent Loan

  • Fixed interest rates
  • No or low origination fees (based on credit rating)
  • Your choice of repayment plan for the life of the loan
  • Free personalized education debt counseling
  • Help from local VT financial aid experts

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 a VSAC Student Loan.

Call 800-226-1029 to speak with one of our Vermont-based student financial aid experts. We're open Monday–Friday 8:00 am to 4:30 pm.




With VSAC's 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.

VSAC Parent Loan for the 2022–2023 academic year

Less expensive option

More expensive option

Immediate: Start principal and interest payments right away

  • Fixed interest rate of 4.99% (APR of 4.99% to 5.72%)
  • 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 7.40% (APR of 7.35% to 8.03%)
  • 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




  • 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 24 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.

Ready to apply?

Start your secure application through MyVSAC.


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

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


  • A U.S. citizen or eligible non-citizen
  • Never defaulted on an education loan

The student must be:

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


  • 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). 

Ready to apply?

Start your secure application through MyVSAC.


With the VSAC Parent 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: $500
  • Maximum loan amount: Up to the cost of your student’s education, minus 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.  

Ready to apply?

Start your secure application through MyVSAC.


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 VSAC Parent Loan for the 2022–2023 school year. 

Repayment Option*

Interest Rate



Finance Charge

Monthly Payments

Total Amount Paid

Principal and Interest Payments with:

Excellent Credit





180 @ $79.69


Better Credit




180 @ $82.08


Good Credit




180 @ $83.67


Delayed Payments for 12 months with:

Excellent Credit





180 @ $100.09


Better Credit




180 @ $103.09


Good Credit




180 @ $105.09




  • An origination fee, when applicable, is added to each loan disbursement.
  • 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 plus an origination fee, when applicable, 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.

Ready to apply?

Start your secure application through MyVSAC.

Parents, 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 personal references (do not use the student as a reference)
    • name
    • address
    • phone
  • Your student's full name, Social Security Number, date of birth, and driver's license state
  • Your student's school name, the requested loan amount, the loan period (month/year of school), and estimated financial aid