VSAC Vermont Parent Advantage Loans

VSAC VERMONT ADVANTAGE PARENT LOAN ELIGIBILITY

To apply for the Vermont Advantage 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

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 ADVANTAGE PARENT 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.

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 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.

VSAC VERMONT ADVANTAGE PARENT LOAN AMOUNTS

With the Vermont Advantage 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.  

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 Advantage Parent Loan for the 2018-2019 school year. 

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.

The application process:

1. Click APPLY and log in to MyVSAC, VSAC's secure portal. New users will need to register.
2. Follow the steps and submit the application. 
3. VSAC will notify you of the next steps, or you can check your pending application online through MyVSAC.

Once you submit the application, there are several steps in the process. Be sure to check your emails regularly for next steps. Allow at least 2 weeks from when you submit your application to when the funds will be ready to be sent to the school.

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)