VSAC Advantage Loan – 2008-2009 Academic Year
For Loans Approved On or After 5/19/08
Need a private education loan? VSAC has a solution.
VSAC strongly recommends that you consider federal student loans before any private education loans. If it turns out you need a private loan, VSAC has a competitively priced private loan available to undergraduate and graduate/professional students.
The VSAC Difference!
- Competitive Interest Rates & Fees – VSAC is committed to providing the lowest-cost education loans possible.
- Flexible Repayment Terms – Extended repayment periods available; no payments due until 6 months after you graduate or are enrolled less than half-time.
- 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
Financial Aid Officers – Certification and Disbursement Information
HOW TO APPLY
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Request Online Credit Pre-approval
The VSAC Advantage loan is a credit-based loan; we must review your credit. You may request a loan application during the online credit pre-approval process. We will mail you a loan application once you are pre-approved. -
Indicate that VSAC is your Lender
When you accept your school’s financial aid award package, indicate that you will be borrowing a VSAC private loan (VSAC Lender Code: 830075).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
The VSAC Advantage loan is available as a supplement to grants, scholarships, federal loans, and school aid.
You may be eligible if you are:
- an undergraduate or graduate/professional student
- eligible for federal student aid (have you completed the FAFSA?)
- borrowing your maximum Stafford loan
- enrolled/enrolling at least half-time at an eligible postsecondary school
- credit-approved or applying with a credit-approved cosigner
- a Vermont resident or attending a Vermont school or already a VSAC loan customer
Law students – Check out our private loan for law students.
Medical students – Check out our private loan for medical students.
INTEREST RATES & FEES
| Credit Criteria | Cosigner Required |
Current Interest Rate* (Effective 4/08-6/08) |
Fees |
|---|---|---|---|
| with Cosigner who meets Exceptional credit criteria | Yes | 5.85% | 0% |
| with Cosigner who meets Excellent credit criteria | Yes | 6.85% | 0% |
| with Cosigner who meets Better credit criteria | Yes | 7.60% | 2% Origination Fee |
| with Cosigner who meets Good credit criteria | Yes | 8.35% | 3% Origination Fee |
| with Cosigner who meets Satisfactory credit criteria | Yes | 8.85% | 5% Origination Fee |
| Borrower meets Good credit criteria | No | 9.10% | 5% Origination Fee |
* Interest rates are variable; updated quarterly and determined using the average of the three-month LIBOR rate (London Inter-bank Offered Rate), plus a margin. There is no maximum rate. Rates shown are effective 4/08–6/08 and the LIBOR for this period is 3.60%.For additional information, check out VSAC APR and Repayment Examples.
LOAN AMOUNTS
Minimum: $200
Maximum: Up to the cost of your education, less any other aid, as determined by your financial aid office.
REPAYMENT
- No payments due until six months after you graduate or are enrolled less than half-time. Notification will be sent to you prior to your first due date.
- Payments are due each month on the same day.
- The standard repayment period is 15 years; you may extend your repayment period up to 30 years.
- There are no prepayment penalties.
- Temporary payment postponement and reduced payment options available.
APR & REPAYMENT EXAMPLE
| Credit Criteria | Fee | Interest Rate | APR | Finance Charge |
Payment Schedule |
|---|---|---|---|---|---|
| With cosigner who meets Exceptional credit criteria |
0% | LIBOR+ 2.25% | 5.63% | $8,563.20 | 179 payments of $103.13 Final payment of $102.93 |
| With cosigner who meets Excellent credit criteria |
0% | LIBOR+ 3.25% | 6.55% | $10,419.11 | 179 payments of $113.44 Final payment of $113.35 |
| With cosigner who meets Better credit criteria |
2% | LIBOR+ 4.00% | 7.43% | $12,091.34 | 179 payments of $121.62 Final payment of $121.36 |
| With cosigner who meets Good credit criteria |
3% | LIBOR+ 4.75% | 8.21% | $13,733.83 | 179 payments of $130.19 Final payment of $129.82 |
| With cosigner who meets Satisfactory credit criteria |
5% | LIBOR+ 5.25% | 8.87% | $15,000.17 | 179 payments of $136.13 Final payment of $132.90 |
| Borrower who meets Good credit criteria |
5% | LIBOR+ 5.50% | 9.09% | $15,546.45 | 179 payments of $139.16 Final payment of $136.81 |
Assumptions:
- Origination fees, when applicable, are deducted from the loan disbursement(s).
- APR (annual percentage rate) and payment amount examples assume a constant LIBOR, $10,000.00 loan amount, a 50-month interim period prior to repayment, a repayment period of 180 monthly payments. The examples shown are estimates only.
- This is a variable rate loan. APR and interest rates may increase or decrease during the loan term. Rates shown are effective 4/1/08-6/30/08 and the LIBOR for this period is 3.60%.
COSIGNER
| You need a cosigner if… | You don’t meet our credit criteria. |
| Consider obtaining a cosigner to… | Get a lower interest rate and fee. |
| Cosigner’s responsibilities are to… | Make payments, including any late or collection fees if the primary borrower is unable to pay. Sign all paperwork along with the primary borrower. |
| As a cosigner expect to… | Receive a bill statement for the loan each month along with the primary borrower. Have the loan’s payment status be reported to the national credit bureaus for both you and the primary borrower. |
| Once a cosigner always a cosigner unless… | Cosigner release is available upon request to qualified borrowers; borrowers must meet VSAC’s credit criteria after 48 months of active repayment. |
COMPARE VSAC ADVANTAGE AND FEDERAL PLUS LOANS
A federal PLUS loan has benefits not available with most private education loans. VSAC recommends that you consider borrowing a PLUS loan before any private loan, including the VSAC Advantage loan.
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Undergraduate Students & Parents: Compare the VSAC Advantage loan to the Parent PLUS loan (PDF)
ADDITIONAL FINANCING OPTIONS
Undergraduate Students
Graduate/Professional Students
Interested in exploring additional financing options? Check out these additional sources of aid.
