May 16, 2006

FOR IMMEDIATE RELEASE
(Contact: Irene Racz, Director of Public Affairs, 655-9602, x240)

VSAC Offers Loan Advice to Students, Grads, and Parents

Consolidate Before July 1; Plan Ahead for New Loans

WINOOSKI – The Vermont Student Assistance Corporation (VSAC), the state’s nonprofit education lender, has advice for students, grads, and parents with existing education loans and for those seeking new loans to cover upcoming college expenses.

Vermonters with existing federal loans should consider consolidating before an expected interest rate hike on July 1. Consolidation enables the borrower to roll amounts from one eligible variable-rate loan or more into a new loan with a fixed interest rate and a single monthly payment. The borrower also has the option to reduce the monthly payment amount by extending the repayment period.

Prior to this year, education loan interest rates hit record lows several years running, prompting a surge of consolidations. On July 1, interest rates are expected to climb for the second year in a row, making now an ideal time to lock in today’s lower rates. Undergrads interested in consolidating their education debt to date should act quickly, as the “in-school consolidation” option will no longer be available after June 30.

For more information, or to start the consolidation process, visit the VSAC Web site at www.vsac.org. To meet the July 1 deadline, borrowers should ensure their completed applications are in VSAC’s hands on or before June 30.

Families seeking new education loans for the 2006-07 academic year are also urged to visit the VSAC Web site to learn about our federal Stafford and PLUS loans for students and parents. VSAC will waive the origination and guarantee fees on Stafford loans guaranteed by the agency on or after May 15, 2006. Also, all Stafford and PLUS loans through VSAC qualify for annual interest rebates.

Vermonters, regardless of where they attend school, are eligible to borrow from VSAC, as are non-residents attending Vermont colleges. Vermont students and parents can contact VSAC for pointers on using VSAC loans out of state or to start the application process.

VSAC doesn’t sell its loans, and provides friendly, customized service in person or by phone, mail, fax, or e-mail. As a nonprofit lender, VSAC uses any revenues in excess of allowable expenses to support a wide range of programs and services available free of charge to Vermont students of all ages and their families.

In addition to guaranteeing, originating, and servicing loans, VSAC administers the state grant program, dozens of public and private scholarships, and the tax-advantaged Vermont Higher Education Investment Plan. It also offers a walk-in center and library; career and college planning on the Web; and myriad workshops, presentations, and conferences on a range of career and college planning topics.