Planning for college or training next year? Apply for the Vermont Grant and explore VSAC’s free scholarship booklet to help you cover costs.
Planning for college or training next year? Apply for the Vermont Grant and explore VSAC’s free scholarship booklet to help you cover costs.
VSAC will be closed Monday, November 11, 2024, in observance of Veterans Day.
Save Money by Comparing Student Loans
Rates as of October 9, 2024
Check an existing application.
10 or 15 years
3 options:
0.25% interest rate discount for auto debit
Yes, to qualified student loan borrowers.
10 or 15 years
2 options:
0.25% interest rate discount for auto debit
Are you new to the world of education loans?
Let VSAC be a loan resource so you can confidently make the right choices now and successfully manage your education costs down the road.
How do you really know which loan is right for you?
We’ll show you what to look for and how your choices can help reduce the amount you’ll ultimately have to repay over the life of your loan.
Why are VSAC student loans right for you?
As Vermont’s nonprofit higher education state agency, VSAC offers low-cost fixed-interest rate private loans for students and parents.
Here’s the key: Loans are borrowed money that must be paid back with interest. This means that the amount you repay will always be more than the amount you borrow. To minimize what you need to borrow and pay back, consider these tips:
Vermont residents attending in and out-of-state higher education institutions, as well as students considering Vermont for higher education are VSAC loan eligible.
Easily and securely apply online. Get started here.
You should apply for a VSAC loan after you've received your financial aid offer, accepted any federal loan offers, checked savings account, but still owe money toward your higher education bill.
It takes just a few minutes to complete the online application.
Before you start your application, be sure to grab:
You should only borrow what you need to cover the remaining balance on your bill. Use this formula
Cost of attendance - (Grants + Aid + Scholarships) - (Savings) = Projected loan amount.
Remember: You never have to borrow the full amount that's offered. A lot of schools offer payment plans, so getting a job or being part of a work-study program can relieve some of the unnecessary costs of a loan.
After you submit your application, VSAC will contact your school to certify your loan request.
Remember to check your registered email for important updates about your account, including notification of your Final Disclosure.
Many people believe that if they shop around for loans, every inquiry into their credit will have a negative impact on their credit score. Not so.
While the FICO scoring formula does take student loan comparison shopping into account, loan shopping during a certain timeframe (30 days is a good rule of thumb, though this can vary), generally will have little to no effect on your credit score. With that said, it's considered good practice to do some comparison shopping before you apply.
If you’re not offered loan terms (rates & fees, for example) that you expected when you applied for a particular loan, stop your application and ask why. If it's a result of your credit score, see if there's another lender that can offer you a better rate with your score.
For a more comprehensive discussion of rate-shopping and inquiries, visit MyFico Credit Checks. Get more information and advice on how to protect your credit score at MyFico.
Once the loan is approved, VSAC will provide the borrower with a Final Disclosure statement via email. This disclosure provides an estimated repayment schedule, loan terms, along with details about the borrower’s “Right to Cancel.”
Once your application is approved and all of your steps are completed, VSAC disburses funds directly to your school according to the school's disbursement calendar. Typically, one disbursement will be sent in fall, and a second in January or February.
Loans can be used to cover the cost of education minus any other financial aid. Please contact your school’s financial aid office to confirm what is included in your total cost.
The Right to Cancel period begins when the loan is approved—during this time you have the option to cancel or reduce the loan amount. VSAC must wait for this period of time to end before sending money to the school. After the Right to Cancel period ends, the funds are sent to the school on the dates requested by the school.
It depends on the repayment plan that you selected on your loan application. The plan you selected determines when payments are due.
No, in fact, we encourage you to make payments early on. This will guarantee you'll save money in the long run and keep the total cost of your education low.
Unfortunately, you can't. A new loan is required each academic year. This can sometimes be beneficial since rates change and especially if you’ve been improving your credit score.
Every VSAC Student Loan requires a cosigner who meets VSAC’s credit criteria.
VSAC is dedicated to offering affordable loan options, and loans without a cosigner tend to have higher interest rates. Having a cosigner on your VSAC Student Loan allows us to offer you low fixed-interest rate options.
If you don’t have a cosigner and still need a loan, ask your school’s financial aid office if they can recommend a lender who doesn’t require one.
If you're a cosigner, you have a responsibility to support the student during the life of their loan. Together you both should:
As a cosigner, you'll also receive billing statements and the loan(s) you cosigned will appear on your credit report.
Use the link in the email invitation from the student borrower to start your application online. The link will first take you to the MyVSAC login page.
If you've never used MyVSAC, click “Register Now”. After you create a MyVSAC profile, the link will take you directly to the loan application you were asked to cosign by the student borrower.
If your cosigner is denied, you'll need to start a new loan application with a different cosigner.
Yes, cosigner release may be available to qualified student borrowers after 48 months of active repayment.
1*Lowest APR's are available for the most creditworthy applicants, Immediate Repayment, lowest term option and include VSAC's 0.25% interest rate discount.
2APR's for student and parent borrowers assume a $10,000 loan where the student attends school for 4 years and 2 equal disbursements in the first year.
For Student and Parent Loan Immediate Repayment, loan enters repayment at final disbursement. For Student Loan Interest Only and Deferred Payment, loan enters repayment after 4 years. For Parent Loan Delayed Repayment, loan enters repayment one year following final disbursement.
To receive a 0.25% interest rate discount, the borrower must enroll in VSAC’s auto debit through LoanPay. The interest rate discount benefit is for VSAC Student, VSAC Parent, and VSAC Choice loans with credit approved on or after May 16, 2024, for the 2024–2025 loan product year. The discount applies during active repayment when you make full or agreed upon reduced payments, as long as: (1) Your monthly payment is successfully withdrawn from the authorized bank account each month; (2) All your VSAC loans are 15 days or less past due; and (3) You agree to receive paperless statements. The interest rate discount is suspended during no-pay forbearance, after 3 consecutive failed payments, or if you cancel paperless statements or auto debit. The interest rate discount will not be reflected in the credit agreement, or disclosures you receive. You must enroll in VSAC’s auto debit through LoanPay when your loan enters repayment.
VSAC reserves the right to modify, terminate, or discontinue borrower benefits at any time, at its sole discretion.