July 2, 2008

FOR IMMEDIATE RELEASE

(Contact: Irene Racz, director of public affairs, 802-655-9602, x240)

Important update for ’08-’09 Stafford, PLUS, and Graduate PLUS loan applicants

To comply with Federal regulations announced this week, VSAC must adjust its borrower benefits for the academic year 2008-09 in order to obtain financing to make new education loans.

VSAC is committed to offering the maximum benefits permitted by these regulations so we will continue to reduce the fees on Federal loans and will reduce the interest rates by one-quarter-of-one percent for borrowers who choose to have these loans paid through automatic debit.

Our borrower benefit programs are among the most generous and successful in the nation and have saved students and families more than $120 million since they were instituted more than 10 years ago. While not as generous as we would like, the new borrower benefits for academic year 2008-09 will make VSAC loans among the lowest-cost loans available anywhere in the nation.