VSAC Residency Loan – Frequently Asked Questions
GETTING A VSAC RESIDENCY LOAN
Q: I need a loan to cover my expenses while I’m participating in a residency program; can I get a VSAC Residency Loan?
A: Yes, if it’s within twelve months prior to or six months after your graduation from medical school, and you are already a VSAC loan customer, you can apply for a VSAC Residency Loan. Keep in mind that VSAC will need to evaluate your credit to determine whether you meet our credit criteria.
Q: How much money can I get?
A: You may borrow up to $10,000.
Q: What if I have bad credit?
A: You can still apply. If you do not meet VSAC’s credit criteria, you and a friend or relative may jointly apply for the loan (i.e., you will be the borrower and they will be the cosigner); your friend or relative must meet our credit criteria.
Q: How do I change the amount of the loan?
A: You can contact VSAC to decrease a loan that has not yet been disbursed. To request an increased amount you must complete a new loan application.
Q: How do I change the disbursement dates?
A: Contact VSAC.
Q: I am a parent; can I take this loan for my son/daughter?
A: The student must apply for the Residency Loan. You may cosign the loan, but your son/daughter is the primary borrower. As a cosigner, you will be equally liable for repayment of the debt.
REPAYING A VSAC RESIDENCY LOAN
Q: When do I have to begin repaying this loan?
A: You will begin repaying your loan nine months after you graduate. You also have the option to postpone payments for the length of your residency program provided you enter the program before your grace period ends. Once you enter repayment, you will receive a monthly bill statement; your first bill statement will be sent to you approximately 25 days prior to your first due date.
Q: Does interest accrue while I am in school?
A: Yes. Interest begins to accrue as soon as VSAC disburses the money to you. However, you are not required to make interest or principal payments until the end of your nine-month grace period.
Q: What are my options if I have difficulty repaying my loan?
A: Some private loan borrowers are eligible to temporarily suspend or lower their monthly payments (generally for about three to six months) at the discretion of the lender (VSAC). Eligibility is limited and is based on individual circumstances. Contact VSAC if you’re having difficulty repaying your loan. (Note: Unlike federal loans, private loans do not include loan deferment entitlements; deferments entitle the borrower to suspend their payments when they meet certain eligibility criteria.)
Q: I want to include my Residency Loan in my Consolidation Loan, can I?
A: No. Private education loans, such as the Residency Loan, can not be included in a Federal Consolidation Loan. You can simplify repayment of your VSAC loans by making sure all of your payments are due on the same day of the month. Contact us if you’d like us to change one or all of your due dates.
Q: Can I lock into a fixed interest rate?
A: Federal Consolidation is currently the only way to lock in a fixed interest rate on your VSAC loan. Your private education loans are not eligible for Federal Consolidation and thus can not be locked into a fixed interest rate. The VSAC Residency Loan has a variable interest rate; it is adjusted quarterly.
Q: My cosigner no longer wants to be a cosigner, can I take his name off of my Residency Loan?
A: Cosigner release is available upon request to qualified borrowers; borrowers must meet VSAC’s credit criteria after 48 months of active repayment. Contact us if you would like to learn more.
