VSAC Residency Loan
For Loans Approved On or After 5/19/08
Need money to help with expenses during your medical residency? VSAC has a solution.
The VSAC Residency loan is a competitively priced private loan available to individuals preparing for or participating in a medical residency program.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 9 months after you graduate from medical school.
- 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
-
Request a Credit Pre-approval (PDF).
Download and mail or fax the pre-approval form to VSAC or call us at 800-798-8722. -
Request a Loan Application (e-mail).
Complete the application and mail it to VSAC. If applicable, include your cosigner's application. -
Wait for instructions from VSAC regarding next steps.
ELIGIBILITY
You may be eligible if you are:
- applying for or participating in a residency program
- applying for the VSAC Residency loan within twelve months prior to or six months after graduating from medical school
- already a VSAC loan customer
- credit-approved or applying with a credit-approved cosigner
INTEREST RATES & FEES
| Credit Criteria | Interest Rate* (Effective 4/08-6/08) |
Fees |
|---|---|---|
| Borrower or Cosigner who meets Excellent credit criteria | 6.60% | 0% |
| Borrower meets Good credit criteria | 6.60% | 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: $10,000
REPAYMENT
- No payments due until nine months after you graduate from medical school.
- Option to postpone payments for the length of your medical internship/residency program if you enter the program within nine months of graduation. You must apply for the postponement on an annual basis.
- 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 are available.
APR & REPAYMENT EXAMPLES
| Credit Criteria | Fee | Interest Rate | APR | Finance Charge |
Payment Schedule |
|---|---|---|---|---|---|
| Borrower or Cosigner with Excellent credit |
0% | LIBOR+3.00% | 6.23% | $10,809.85 | 179 payments of $115.62 Final payments of $113.87 |
| Borrower only with Good credit |
5% | LIBOR+3.00% | 6.69% | $11,309.85 | 179 payments of $115.62 Final payments of $113.87 |
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 58-month interim period prior to repayment, and a repayment period of 180 monthly payments. The example also assumes the borrower has entered an internship/residency program within nine months of graduation and has requested an extended interim period. 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
A cosigner is the co-borrower of the loan and is jointly and severally liable for repayment of the loan.
| You need a cosigner if… | You don’t meet our credit criteria. |
| Consider obtaining a cosigner to… | Save on fees - No fee if you, or a cosigner you choose, meet VSAC’s excellent credit criteria. |
| 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. |
