Stafford Loan - 2007/2008 Academic Year
The Stafford loan is a federal loan available to undergraduate and graduate/professional students. The details provided below describe VSAC Stafford Loans with a first disbursement before 7/1/08.
The VSAC Difference!
VSAC Stafford loans are zero fee loans and automatically receive an interest rebate equivalent to 1% of the outstanding principal balance each year during repayment.*
Law Students – Check out the Stafford loan for you
Medical Students – Check out the Stafford loan for you
Get the facts
HOW TO APPLY
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Apply Online!
VERMONT RESIDENTS: Undergraduate students should complete the Vermont Grant Application before applying for a loan. -
When you accept your school’s financial aid award package, indicate that VSAC is your lender (VSAC Lender Code: 830075; VSAC Guarantor Code: 750).
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Follow instructions from VSAC and your school regarding next steps.
ELIGIBILITY
You may apply if you are:
- an undergraduate or graduate/professional student
- eligible for federal aid (have you completed the FAFSA?)
- enrolled/accepted for enrollment at least half-time at an eligible school
- a Vermont resident or attending a Vermont school or already a VSAC customer
You may also be eligible if you are taking courses to enter a degree program. Contact your financial aid officer for more information.
BORROWER BENEFITS*
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No Fees
VSAC pays the federal fees on your behalf! -
Annual 1% Rebate
Throughout repayment, VSAC Stafford loans automatically receive an annual interest rebate equivalent to 1% of the outstanding principal balance.
Get the Savings
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Undergraduate students – Check out how much you can save!
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Graduate/professional students – Check out how much you can save!
INTEREST RATE & FEES
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The interest rate is fixed at 6.80%.
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VSAC charges no origination or federal default fees; we pay the federal fees on your behalf.
LOAN AMOUNTS
2007-2008 & 2008-2009 LOAN AMOUNTS
| Annual Loan Limits | ||
|---|---|---|
| All Students (subsidized/unsubsidized) |
Independent Students (additional unsubsidized) | |
| 1st Year Undergraduate | $3,500 | $4,000 |
| 2nd Year Undergraduate | $4,500 | $4,000 |
| Remaining Undergraduate | $5,500 | $5,000 |
| Graduate/Professional | $8,500 | $12,000 |
| Dependent Undergraduate | $23,000 | |
| Independent Undergraduate | $46,000 | |
| Graduate/Professional | $138,500 | |
REPAYMENT
- Repayment begins six months after you graduate or fall to less than half-time enrollment. Notification will be sent to you prior to the first due date.
- Payments are due each month on the same day.
- The standard repayment period is 10 years; you may be eligible for additional years based on the total amount you borrow and the date you borrowed your first federal loan.
- You may be eligible for temporary payment suspension through deferment and/or forbearance.
- There are no prepayment penalties.
- Stafford loans are eligible for federal loan consolidation.
SUBSIDIZED VS UNSUBSIDIZED LOANS
Your school determines your subsidized and unsubsidized Stafford loan eligibility; details of your eligibility will be included in the financial aid award package provided to you by your school. The same application is used for both loan types; you do not need to complete multiple applications.
What’s the difference between a subsidized Stafford loan and an unsubsidized Stafford loan?
Subsidized Stafford Loan
- You must have demonstrated financial need to borrow a subsidized Stafford loan.
- The federal government pays the interest while you are enrolled in school (at least half-time) and during grace and deferment periods. You are not required to make monthly payments until six months after you graduate or fall to less than half-time enrollment.
Unsubsidized Stafford Loan
- You may borrow an unsubsidized Stafford loan without demonstrating financial need.
- The federal government does not pay the interest; you are responsible for all interest. Interest begins to accumulate immediately upon disbursement. You are not required to make monthly payments until six months after you graduate or fall to less than half-time enrollment.
ADDITIONAL FINANCING OPTIONS
For Undergraduate Students
For Graduate/Professional Students
Interested in exploring additional financing options? Check out these additional sources of aid.
*Borrower benefits described are effective for Stafford loans with a first disbursement before 7/1/08. VSAC evaluates borrower benefits each academic year and reserves the right to modify, terminate, or discontinue them at any time, at its sole discretion. Loans 180 or more days past due are not eligible for the annual rebate benefit. The annual rebate is not available to students or graduates of an approved law or medical school.
