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VSAC Parent Loan Details 

A fixed-rate loan for parents helping to finance their student’s undergraduate or graduate education.

Review the details in the tabs below and begin your application when you're ready. If you’d like to consider the option of cosigning your student’s loan, you may also want to learn about a VSAC Student Loan.

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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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
  • Never defaulted on an education loan

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). 

Ready to apply?

Start your secure application through MyVSAC.

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.

VSAC Parent Loan for the 2023–2024 academic year
Less expensive optionMore expensive option

Immediate: Start principal and interest payments right away

  • Fixed interest rate of 4.70% to 6.41% APR
     
  • First monthly payment due within 45 days of the final disbursement to the school
     
  • Less expensive option over the life of the loan (lowest interest rate and you begin paying back principal sooner)

Delayed: Begin repayment 12 months after loan is fully disbursed

  • Fixed interest rate of 7.43% to 8.49% APR
     
  • First monthly payment due within 12 months plus 46 days of the final disbursement to the school
     
  • More expensive option over the life of the loan

 

 

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.

Ready to apply?

Start your secure application through MyVSAC.

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.  

Ready to apply?

Start your secure application through MyVSAC.

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 2023-2024

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

$10,000 loan example

TermInterest rate rangeAPR rangeMonthly Interest paymentsMonthly payment during loan termTotal of payments

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Immediate Repayment

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Delayed for one year
10 years (120 months)

4.70%-6.11%

4.70%-6.11%

N/A

$105.43-$112.71

$12,651.60-$13,525.20

15 years (180 months)

5.38%-6.41%

5.38%-6.41%

N/A

$81.80-$87.54

$17,966.40- $18,963.60

10 years (120 months)

7.49%-8.25%

7.43%-8.18%

N/A

$129.04-$134.48

$15,484.80-$16,137.60

15 years (180 months)

7.79%-8.55%

7.74%-8.49%

N/A

$102.95-$108.64

$18,531.00-$19,555.20

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.

Ready to apply?

Start your secure application through MyVSAC.

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

Ready to apply?

Start your secure application through MyVSAC.