Parent PLUS Loan – 2007/2008 Academic Year
The Parent PLUS loan is a federal loan available to parents of dependent undergraduate students. The details provided below describe Parent PLUS loans with a first disbursement before 7/1/08.
The VSAC Difference!
VSAC Parent PLUS loans automatically receive an interest rebate equivalent to 1% of the outstanding principal balance each year during repayment.*
GET THE FACTS
HOW TO APPLY
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Apply Online or request Online Credit pre-approval
The Parent 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 your son/daughter accepts the school’s financial aid award package, they need to indicate that VSAC is their lender (VSAC Lender Code: 830075; VSAC Guarantor Code: 750).TIP: Use your son/daughter’s financial aid award package to determine how much to borrow. You are eligible to borrow up to the total cost of your son/daughter’s 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 son/daughter's school regarding next steps.
ELIGIBILITY
Parents - You may qualify if you meet our credit criteria (or have an endorser that meets our credit criteria) and your son/daughter is:
- a dependent undergraduate 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 if you are a Vermont resident, OR already a VSAC customer
BORROWER BENEFITS*
Annual 1% Rebate
Throughout repayment — even while your son/daughter is enrolled in school — VSAC Parent PLUS loans automatically receive an annual interest rebate equivalent to 1% of the outstanding principal balance.
Get the Savings - Choose VSAC and save!
INTEREST RATE & FEES
The interest rate is fixed at 8.5%.
Fees are deducted at disbursement:
- 3% federal origination fee
- 1% federal default fee
LOAN AMOUNTS
The total amount which you can borrow is determined by the school’s financial aid office; you can borrow up to the total cost of your son/daughter’s education, less any other financial aid. There is no income requirement; you must work with your son/daughter's school to determine how much to borrow.
REPAYMENT
- Repayment begins approximately 45 days after the loan is fully disbursed. 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.
- There are no prepayment penalties.
- You may be eligible for temporary payment suspension through deferment and/or forbearance; you may request payment suspension while your son/daughter is enrolled.
- Parent PLUS loans are eligible for federal loan consolidation.
- Parent PLUS loans are the legal responsibility of the parent and cannot be transferred to the student.
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
For Undergraduate Students
Interested in exploring additional financing options? Check out these additional sources of aid.
*The borrower benefits described are effective for Parent PLUS loans with a first disbursement before 7/1/08. In addition to these benefits, VSAC will pay the 1% federal default fee on PLUS loans approved on or after 5/19/08. VSAC evaluates 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.
