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VSAC Student Loan Details
A fixed-rate loan for students who need additional financing for undergraduate or graduate education.
Benefits of a VSAC Student Loan
- Fixed interest rates
- No or low origination fees (based on credit rating)
- Pay while in school or pay later
- Cosigner release option after 48 months of active repayment
- Loans for undergraduates, graduate/professional students, and parents
- Help from local VT financial aid experts
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.
VSAC STUDENT LOAN ELIGIBILITY
To apply for VSAC's Student Loan, the student borrower must be:
- A Vermont resident attending college in or out of state, or
- From another state attending college in Vermont
and:
- An undergraduate or graduate student enrolled at least half time at an eligible postsecondary school
- Applying with a credit-approved cosigner
and:
- A U.S. citizen or eligible non-citizen
- Never defaulted 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 VSAC 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. |
For your application as a cosigner on a student loan, you'll need … |
|
Ready to apply?
Start your secure application through MyVSAC.
VSAC STUDENT LOAN REPAYMENT & INTEREST RATE OPTIONS
With the VSAC Student Loan, you choose your interest rate, based on the repayment option that works best for you. The information below is for loans for the 2022–2023 school year:
- 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
- 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 6.60% (APR of 6.60% to 7.20%)
- 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 7.40% (APR of 7.11% to 7.61%)
- 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.
VSAC STUDENT LOAN AMOUNTS & PAYMENTS
With the VSAC 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 VSAC Student Loan for the 2022-2023 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 |
4.99% |
0% |
4.99% |
$4,344.20 |
n/a |
180 @ $79.69 |
$14,344.20 |
Better Credit |
3% |
5.43% |
$4,774.40 |
180 @ $82.08 |
$14,774.40 |
||
Good Credit |
5% |
5.72% |
$5,060.60 |
180 @ $83.67 |
$15,060.60 |
||
Interest Only Payments while enrolled with: |
|||||||
Excellent Credit |
6.60% |
0% |
6.60% |
$8,176.74 |
40 @ $55.58 |
180 @ $88.63 |
$18,176.74 |
Better Credit |
3% |
6.96% |
$8,722.24 |
40 @ $57.25 |
180 @ $91.29 |
$18,722.24 |
|
Good Credit |
5% |
7.20% |
$9,085.30 |
40 @ $58.36 |
180 @ $93.06 |
$19,085.30 |
|
Deferred Payments while enrolled with: |
|||||||
Excellent Credit |
7.40% |
0% |
7.11% |
$10,874.60 |
n/a |
180 @ $115.97 |
$20,874.60 |
Better Credit |
3% |
7.41% |
$11,501.00 |
180 @ $119.45 |
$21,501.00 |
||
Good Credit |
5% |
7.61% |
$11,918.60 |
180 @ $121.77 |
$21,918.60 |
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 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.
Students, 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 references who have known you for at least 3 years and are not your parents or your cosigner
- name
- address
- phone
- Your cosigner's email address
- Estimated financial aid
- School name
- Requested loan amount & loan period (month/year of school)