Grad PLUS Loan – 2008/2009 Academic Year
The Grad PLUS loan is a federal loan available to graduate/professional students. The details provided below describe VSAC’s Grad PLUS loans with a first disbursement on or after 7/1/08.
The VSAC Difference!
- Outstanding Borrower Benefits – Check out how much you can save.
- Unparalleled Customer Service – Helpful, friendly, accessible; personalized service to meet your needs.
- Convenient Online Services – Credit pre-approval, account access, loan payments.
- Count On Us To Be There – VSAC isn’t in the business of selling loans.
GET THE FACTS
HOW TO APPLY
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Apply Online or request Online Credit pre-approval
The Grad PLUS loan is a credit-based loan; we must review your credit. You may request a loan application (Master Promissory Note) during the online credit pre-approval process. -
Indicate that VSAC is your Lender
When you accept your school’s financial aid award package, indicate that VSAC is your lender (VSAC Lender Code: 830075; VSAC Guarantor Code: 750).TIP: Use the financial aid award package to determine how much to borrow. You are eligible to borrow up to the total cost of your education less any financial aid. However, only borrow what you need and what you will comfortably be able to repay.
- Wait for instructions from VSAC and your school regarding next steps.
ELIGIBILITY
You may be eligible if you are:
- a graduate student
- eligible for federal student aid (have you completed the FAFSA?)
- applying for the maximum Stafford loan for which you are eligible
- enrolled/enrolling at least half-time at an eligible postsecondary school
- credit-approved or applying with a credit-approved endorser
- a Vermont resident or attending school in Vermont or already a VSAC customer
BORROWER BENEFITS*
VSAC borrower benefits are easy to get and easy to keep!
Lower Fees
- 3% origination fee
- VSAC charges no federal default fees on loans approved on or after 5/19/08; we pay the fee on your behalf.
Interest Rate Reduction
- 8.5 % federal interest rate is reduced to 7.5% with VSAC.
- VSAC automatically reduces the federal interest rate by 1% when your loan enters repayment.
- Keep the lower interest rate as long as you make your payments within 21 days of your due date.
- If you make a late payment; get the lower interest rate back by making 12 consecutive on-time payments.
Get the Savings - Choose VSAC and save!
INTEREST RATE & FEES*
| Federal Interest Rate |
VSAC Interest Rate |
Federal Fees |
Federal Fees Borrowing with VSAC | |
|---|---|---|---|---|
| Grad PLUS | 8.5% | 7.5% | 4% | 3% |
LOAN AMOUNTS
The total amount which you can borrow is determined by your school’s financial aid office; you can borrow up to the cost of your education, less any other financial aid. There is no income requirement; you must work with your school to determine how much to borrow.
REPAYMENT
- No payments will be due while you are enrolled at least half-time. 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 when you borrowed your first federal loan.
- There are no prepayment penalties.
- You may be eligible for temporary payment suspension through deferment and/or forbearance.
- Grad PLUS loans are eligible for federal loan consolidation.
ENDORSER
- Obtaining an endorser is only necessary if the primary borrower cannot resolve their adverse credit issues.
- An endorser agrees to be secondarily liable for the loan if the borrower does not pay as agreed.
- Endorsers are reported to the credit bureaus as secondarily liable for the loan.
- Endorsers do not receive monthly bill statements but do receive past due notices.
- If the primary borrower is unable to pay, the endorser is expected to make payments, including any late or collection fees.
- Endorsers may request assistance with repayment if payments are not manageable.
- Endorsers are not required to sign paperwork or meet eligibility requirements for repayment options requested by the borrower.
- If the primary borrower consolidates the PLUS loan, the endorser will no longer be liable for the loan.
ADDITIONAL FINANCING OPTIONS
Interested in exploring additional financing options? Check out these additional sources of aid.
*Borrower benefits described are effective for loans with a first disbursement on or after 7/1/08. Quoted VSAC interest rate includes the 1% interest rate reduction available upon repayment and thereafter as long as you make on-time payments. PLUS loans approved prior to 5/19/08 are charged a 1% federal default fee. VSAC evaluates borrower benefits each academic year and reserves the right to modify, terminate, or discontinue them at any time, at its sole discretion.
