VSAC Student Loan Details

A fixed-rate loan for students who need additional financing for undergraduate or graduate education.

If you need help paying for your undergraduate or graduate education, the Vermont Advantage Student Loan may be a good option for you. This loan offers a fixed-interest rate as low as 4.79% APR and access to an Advantage Loan Coach for ongoing support and personalized counseling as you prepare for repayment. 

Review the details in the tabs below and begin your application when you're ready.

If you’re a parent and you’d like to consider a loan only in your name, you may want to learn about VSAC’s student loan for parents.

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.

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VERMONT ADVANTAGE STUDENT LOAN ELIGIBILITY

To apply for VSAC's Vermont Advantage Student Loan, the student borrower must be:

  • An undergraduate or graduate student enrolled at least half time at an eligible postsecondary school
  • Applying with a credit-approved cosigner

and:

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

and:

  • A U.S. citizen or eligible non-citizen
  • Not in default on an education loan
  • 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.

VSAC requires a credit-eligible cosigner for our Advantage Student Loan.
Here's what you'll need to know:
A cosigner … is a U.S. citizen or eligible non-citizen (frequently the student applicant’s parent or guardian) who is equally responsible for repaying the loan.
A cosigner who meets
our excellent
credit criteria will …
enable the student applicant to get a 0% fee loan.
A cosigner who is able to make payments while the student is enrolled will … enable the student applicant to select the immediate repayment option, which has the lowest interest rate.
Cosigner’s responsibilities
include …
(1) making payments, including any late or collection fees if the student borrower is unable to pay.
(2) signing all paperwork along with the student borrower.
As a cosigner, expect to … (1) receive the same monthly bill statement for the loan that the student borrower receives.
(2) have the loan’s payment status reported to national credit bureaus.
Cosigner release may be available … upon request from borrowers who meet VSAC's credit criteria after 48 months of active repayment.
Loan debt is cancelled completely … if the student dies or becomes totally and permanently disabled. If the cosigner dies or becomes totally and permanently disabled, the cosigner is removed from the loan, which remains in the student’s name.

 

Ready to apply?

Start your secure application through MyVSAC.

VERMONT ADVANTAGE STUDENT LOAN REPAYMENT & INTEREST RATE OPTIONS

With the Vermont Advantage Student Loan, you choose your interest rate, based on the repayment option that works best for you.

  • Immediate: Start principal and interest payments right away
    • Fixed interest rate of 4.79% (APR of 4.79% to 5.51%)
    • First monthly payment due within 45 days of the final disbursement to the school
    • Least expensive option over the life of the loan (lowest interest rate and you begin paying back principal sooner)
  • Interest only: Make monthly interest payments while enrolled (at least half time)
    • Fixed interest rate of 5.89% (APR of 5.89% to 6.47%)
    • First monthly payment of interest due within 45 days of the final disbursement to the school
    • Reduced-cost option over the life of the loan
  • Deferred: Begin repayment after enrollment ends
    • Fixed interest rate of 6.90% fixed (APR of 6.65% to 7.15%)
    • First monthly payment of principal + interest due within 45 days after at least half-time enrollment ends
    • Most expensive option over the life of the loan

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.

Tip: You'll pay less over the life of your loan if you pay as you go--full or interest payments can go a long way in reducing the overall amount you pay back.

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 student borrower dies or becomes totally and permanently disabled.

 

Ready to apply?

Start your secure application through MyVSAC.

VERMONT ADVANTAGE STUDENT LOAN AMOUNTS & PAYMENTS

With the Vermont Advantage Student Loan, you choose the amount you want to borrow for each academic year. Your school will certify your eligibility and schedule disbursements based on your enrollment period.

  • Minimum loan amount: $500
  • Maximum loan amount: Up to the cost of your 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 for you and your cosigner
  • Prevents delays in your subsequent disbursements
  • Minimizes credit bureau inquiries

MONTHLY & LIFETIME STUDENT LOAN PAYMENTS

The amount you’ll pay each month—and over the life of the student loan—will vary based on your cosigner's credit history, the repayment option you choose (which determines your interest rate), and 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 Student Loan for the 2019-2020 school year.  

Repayment Option*

Interest Rate

Fee

APR

Finance Charge

Monthly Interest Only Payments

Monthly Full Payments

Total Amount Paid

Principal and Interest Payments while enrolled with:

Excellent Credit

4.79%

0%

4.79%

$4,149.80

n/a

180 @ $78.61

$14,149.80

Better Credit

3%

5.23%

$4,574.60

180 @ $80.97

$14,574.60

Good Credit

5%

5.51%

$4,857.20

180 @ $82.54

$14,857.20

Interest Only Payments while enrolled with:

Excellent Credit

5.89%

0%

5.89%

$7,213.60

40 @ $49.55

180 @ $84.62

$17,213.60

Better Credit

3%

6.24%

$7,730.00

40 @ $51.03

180 @ $87.16

$17,730.00

Good Credit

5%

6.47%

$8,073.92

40 @ $52.02

180 @ $88.85

$18,073.92

Deferred Payments while enrolled with:

Excellent Credit

6.90%

0%

6.65%

$9,956.60

n/a

180 @ $110.87

$19,956.60

Better Credit

3%

6.95%

$10,556.00

180 @ $114.20

$20,556.00

Good Credit

5%

7.15%

$10,955.60

180 @ $116.42

$20,955.60

Repayment Assumptions

  • 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 both the immediate repayment and interest-only payment options, and at the end of at least half-time enrollment for the deferred repayment option. For interest-only payment and deferred repayment, borrower is enrolled for 44 months.
  • All payments are made on time. Examples are estimates.

If you have additional questions on loan amounts and payments, call your VSAC Advantage Loan Coach at 800-226-1029 (Monday–Friday 8:00 am to 4:30 pm).

*The deferred repayment option is subject to fund availability. Funds will be awarded on a first-come, first-served basis. Interest rates for interest-only payment and deferred 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. Loans made under the deferred repayment option will remain deferred as long as the student remains enrolled in at least half-time status at an eligible school.

Ready to apply?

Start your secure application through MyVSAC.

COMPARE VSAC LOANS WITH FEDERAL PLUS

Both the Vermont Advantage Student Loan and the Vermont Advantage Parent Loan have a fixed interest rate lower than the federal Direct PLUS loan and may be a better financing option, depending on your situation.

 

VSAC’s Vermont Advantage Student Loan

VSAC’s Vermont Advantage Parent Loan

Federal Direct PLUS

What are the payment options?

Your choice of 3 payment options:

 

1. Immediate: Start principal and interest payments once loan is fully disbursed

2. Interest only: Make monthly interest payments while enrolled

 

3. Deferred: Begin paying after enrollment ends

Your choice of 2 payment options:

 

1. Immediate: Start principal and interest payments right away

 

2. Delayed: Begin paying 12 months after loan is fully disbursed

 

 

Your choice of 2 payment options:

 

1. Deferred (for student borrowers) and can be requested by parent borrowers: Begin paying 6 months after you graduate, leave school, or drop below half-time enrollment

 

2. Immediate (for parent borrowers): Start principal and interest payments once loan is fully disbursed; may request a 6-month deferral once your child leaves school

 

What are the interest rates?

 

Interest rate depends on your chosen payment option:

 

1. Immediate: 4.79% fixed (APR of 4.79% to 5.51%)

 

2. Interest only: 5.89% fixed (APR of 5.89% to 6.47%)

 

3. Deferred: 6.90% fixed (APR of 6.65% to 7.15%)

Interest rate depends on your chosen payment option:

 

1. Immediate: 4.79% fixed (APR of 4.79% to 5.51%)

 

2. Delayed: 6.70% fixed (APR of 6.66% to 7.33%)

 

1 interest rate:

 

Estimated 7.08% fixed for loans taken out between July 1, 2019, and June 30, 2020

 

 

The federal government does not provide APR information.

 

Is the interest rate fixed (the same) throughout life of loan?

Yes

Yes

Yes

Is there an origination fee?

For some borrowers (one-time fee is 0-5% based on cosigner’s credit)

For some borrowers (one-time fee is 0-5% based on parent borrower’s credit)

Yes (one-time fee of 4.264% for loans  disbursed by September 30, 2019)

May interest be tax deductible?

Yes

Yes

Yes

Whose name is on the loan?

Student and cosigner

Parent borrower

Parent on a Parent PLUS or Student on a Graduate PLUS

 

Is there flexibility during repayment?

 

Yes (temporary postponements available for financial hardship at VSAC’s discretion)

 

Yes (postponements available for economic hardship, unemployment, or other situations)

All loans: Interest continues to accrue when payments postponed

Will the loan be cancelled in case of death or total and permanent disability?

Yes

 

[Note: if cosigner dies, cosigner is removed from loan, which remains in student name]

Yes

 

Yes

 

Who do I contact if I need additional help?

Contact your Vermont Advantage Loan Coach at 800-226-1029 (Monday – Friday 8:00 a.m. to 4:30 p.m.)

Contact your Vermont Advantage Loan Coach at 800-226-1029 (Monday – Friday 8:00 a.m. to 4:30 p.m.)

Call 1-800-433-3243 or visit StudentAid.ed.gov

 

The Bottom Line: When comparing to the PLUS loan, your lowest-cost option may be a VSAC Student Loan or Parent Loan.

Ready to apply?

Start your secure application through MyVSAC.