IMPORTANT – If you’re a spring 2023 Vermont college grad who is staying in state and working for a Vermont-based company, you could be eligible for $5000 in loan repayment! CLICK HERE.
Student Loan Repayment 101
How Student Loan Interest Works
When you take out a loan for college or career training, your repayment of that loan will consist of the amount you’re borrowing plus interest. The interest is the fee you pay the lender—such as VSAC or the federal government—in exchange for borrowing the lender’s money. The shorter the repayment period, the less interest you’ll pay over the life of your student loan.
How Credit Reporting Works
A credit report is a record of your financial transactions each new lender reviews when considering whether to give you a loan. Your history of repayment on previous loans can affect your options when it comes to getting a loan for college or career training—or other large purchases—in the future.
How Cosigners Work
If you’re a student with little-to-no credit history, you likely won’t qualify for a nonfederal student loan on your own. If you’re applying for VSAC’s Vermont Advantage Student Loan, you'll need to have a cosigner on your loan. A cosigner—often a parent—is a person with a good/excellent credit history who supports your educational goals and agrees to be held responsible for the loan if you fail to make your monthly payments.
How Student Loan Interest Deduction Works
You may be able to deduct the interest paid toward your student loan on your tax return. This can help you save money when it comes time to pay taxes.