VSAC Annual Report - 2006 Opening new doors
Planning Resources | Financial Resoures | Partner Resources | Other Services | 2006 Financial Statements
VSAC's mission is to ensure that all Vermonters have the necessary financial and information resources to pursue their education goals beyond high school.
As a public, nonprofit corporation created by the Vermont Legislature in 1965, VSAC has always focused on helping Vermonters achieve the dream of education beyond high school.
How we fulfill our mission has expanded over the years to include a wide array of services in college and career planning, education financing, loan servicing and debt management, and related activities.
In the face of expected demographic shifts in Vermont, VSAC's work will become even more critical in helping residents to fulfill their education and career goals and our state to remain an attractive place to live and work.
From VSAC's board chair and president
Every season during 2005-06 brought positive developments for Vermont students and families and proud reminders of the lengths VSAC staff go to serve them.
During the summer, we learned that our federal GEAR UP grant would be renewed for $21 million over six years. Gaining Early Awareness and Readiness for Undergraduate Programs helps disadvantaged students prepare and pay for college and also supports local school improvement efforts.
As fall emerged, VSAC's long-awaited new building - the impetus for Winooski's revitalization - neared completion. In November, Governor James Douglas was on hand to unveil the city's new infrastructure. VSAC's doors opened the following month, and our employees - previously housed two towns apart - made a smooth transition to our new quarters. The move enabled us to make headway on technological and other improvements and to provide customers with a more inviting and accessible walk-in center and library.
The General Assembly, convening in winter, adopted several measures benefiting students and families. Approved were a 4-percent funding increase for need-based grants and continued "Emily Lester" funding for students lacking parental support, both programs VSAC administers. Responding to the governor's Promise Scholarship proposal, lawmakers also provided VSAC with $1.66 million in supplemental funds for grants and $1 million in one-time funds to encourage at-risk students to pursue education or training beyond high school. In addition, legislators increased the state income tax credit available to participants in the VSAC-administered Vermont Higher Education Investment Plan.
In the spring, VSAC entered its traditionally busy loan origination and consolidation season. In the face of increasing competition and changing regulations in the student loan market, staff went to great lengths to advise customers of the benefits - including borrower savings totaling $103 million since 1994 - of choosing a local, nonprofit lender like VSAC. Our counselors handled the ensuing deluge of calls with their usual grace, resulting in a record volume of new loans and consolidations.
Throughout the year, staff met with individual customers at VSAC, in schools and agencies statewide, and at community events; conducted workshops for students and parents, adult learners, and education professionals; arranged conferences and career fairs; and participated in groups focused on workforce development, financial literacy, and more. Our personalized service helped borrowers better manage their debt, resulting in VSAC's loan default rate remaining among the lowest in the nation. Through a variety of workplace events, staff donated nearly $45,000 to charitable causes. In addition, many built on their work experience to volunteer as mentors.
As we look ahead, we know there is much to be done to ensure that education beyond high school is possible for all Vermonters. In an era of increasing competition, greater use of technology, changing customer-service models, and an explosion of mass-marketing, VSAC will continue to modernize without losing sight of our nonprofit mission or the close relationship we enjoy with Vermonters.
| Chris Robbins, Chair, VSAC Board of Directors |
Donald R. Vickers, VSAC President |
PLANNING RESOURCES
In recent years, VSAC has spent considerable time educating Vermonters about the importance of planning and saving for college. As education debt loads continue to rise, saving for college becomes a critical component in helping to keep education affordable and accessible. At the same time, it's important for Vermont families to have up-to-date information on career trends and education options. Following is a summary of VSAC's career and college planning resources.
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Vermont Higher Education Investment Plan
Career and college planning
Early intervention and outreach (federally funded)
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FINANCIAL RESOURCES
VSAC has administered state grants and guaranteed education loans since our earliest days. Later on, we added scholarship administration and loan origination and servicing, two areas that have seen major growth in the last decade. Given our array of financing options, we are able to offer Vermonters "one-stop shopping" for college financing, as well as personalized, friendly service.
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Grants (state funded)
Scholarships (public and private)
Loans (federal and private)
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"You are phenomenal. Every VSAC counselor I've spoken to has been knowledgeable and easy to work with." |
PARTNER RESOURCES
In addition to providing students and families with direct service, VSAC collaborates with public schools, colleges, state agencies, and many organizations throughout Vermont to leverage scarce resources and enhance career and education opportunities for Vermonters.
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Financial literacy/debt management
Services for schools
Services for colleges
Agency partnerships
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OTHER SERVICES
In addition to serving Vermonters directly or through collaborations with others, VSAC supports charitable donors, educators, and policy-makers in their quest to motivate more Vermonters to pursue education beyond high school.
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Development
Research
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"Thank you from the bottom of my heart for the help you have provided during my college career. Without it, I would have missed endless opportunities." |
2006 Financial Statements
| Statement of Net Assets | 2006 | 2005 |
| (in thousands) | ||
| Assets | ||
| Cash and investments | $152,208 | $399,072 |
| Education loans receivable (plus interest) | 1,670,870 | 1,473,076 |
| Other assets | 35,857 | 27,873 |
| Total assets | $1,858,935 | $1,900,021 |
| Liabilities | ||
| Bonds and notes payable (plus interest) | $1,705,825 | $1,762,638 |
| Arbitrage earnings rebatable | 23,525 | 20,083 |
| Other liabilities | 6,737 | 9,456 |
| Total liabilities | $1,736,087 | $1,792,177 |
| Net Assets | ||
| Restricted | $69,951 | $54,736 |
| Unrestricted | 50,786 | 50,731 |
| Net investment in property and equipment | 2,111 | 2,377 |
| Total net assets | $122,848 | $107,844 |
| Total liabilities and net assets | $1,858,935 | $1,900,021 |
| Statement of Revenues and Expenses | 2006 | 2005 |
| (in thousands) | ||
| Revenues | ||
| Interest earned from education loan financing | $127,519 | $102,018 |
| Other loan and guarantee program revenues | 5,155 | 4,422 |
| Investment interest | 9,414 | 4,472 |
| Vermont state appropriations | 18,746 | 17,143 |
| Federal grants | 3,841 | 3,425 |
| Scholarship and gift revenue | 4,126 | 3,986 |
| Other revenue | 1,087 | 791 |
| Total operating revenues | $169,888 | $136,257 |
| Expenses | ||
| Student aid | $23,429 | $20,828 |
| Interest rebated to borrowers | 6,561 | 7,567 |
| Interest on debt | 56,371 | 32,317 |
| Other loan financing costs | 35,538 | 39,066 |
| Corporate operating expenses and depreciation | 32,985 | 30,305 |
| Total expenses | $154,884 | $130,083 |
| Excess of revenues over expenses | 15,004 | 6,174 |
| Total net assets at the beginning of the year | 107,844 | 101,670 |
| Total net assets at the end of the year | $122,848 | $107,844 |
| Certain items in the 2005 financial statements have been reclassified to conform with the 2006 statements. A complete set of financial statements as audited by an independent public accounting firm is available on VSAC's Web site or by request. | ||
