Benefits of a VSAC Parent Loan

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

VSAC Parent Loan Eligibility

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

and:

• A U.S. citizen or eligible non-citizen

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 Parent Loan Repayment Options

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

Loan Repayment Terms

• You choose your repayment option (immediate or delayed) and either a 10- or 15-year repayment period.
• 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 parent or student dies or becomes totally and permanently disabled.

VSAC Parent Loan Amounts

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
• Minimum monthly payment amount: $20

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 will vary based on your 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 schedule automated debits through VSAC's LoanPay system.

APR/Repayment examples for Student Parent Loan 2025-2026

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

$10,000 loan example

Assumptions:

Two disbursements of $5000 each in September and January; Principal and Interest and Interest Only payments begin in February. 
Full payments begin Delayed option in February the following year.

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 academic period (month/year of school), and estimated financial aid