VSAC Residency Loan
For Loans Approved Before 5/19/08
The VSAC Residency loan is a competitively priced private loan available to individuals preparing for or participating in a medical residency program.
GET THE FACTS
Financial Aid Officers — Certification and Disbursement Information
HOW TO APPLY
-
If you need a loan for the 2007-2008 school year please call 800-226-1029 to speak with a VSAC Counselor.
-
Request a Loan Application (e-mail).
Complete the application and mail it to VSAC. If applicable, include your cosigner's application.
ELIGIBILITY
You may be eligible if you are:
- 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
BORROWER BENEFITS*
VSAC Residency loans approved before 5/19/08 automatically qualify!
Annual 1% Rebate
Throughout repayment, VSAC Residency loans receive an annual interest rebate equivalent to 1% of the outstanding principal balance.
INTEREST RATES & FEES
| When you or your cosigner meet our best credit criteria... | When you meet our good credit criteria... |
|
Origination Fee = 0% NO FEE! Interest Rate = LIBOR + 2.70% |
Origination Fee = 5% Interest Rate = LIBOR + 2.70% |
- The interest rate is variable and changes quarterly. It is based on the average of the three-month LIBOR rates (London Inter-bank Offered Rate) published on the first business day of each month of the preceding quarter, plus a margin based on whether you obtained a cosigner and the strength of your credit/your cosigner’s credit. Rates shown are effective 4/08–6/08 and the LIBOR for this period is 3.60%.
- See APR and Repayment Examples for additional information.
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 the 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.
- Limited temporary payment postponement and reduced payment options available.
APR & REPAYMENT EXAMPLES
| Credit | Fee | Interest Rate | APR | Payment Amount | |
| Student or cosigner | best | 0% | LIBOR + 2.70% | 5.96% | $112.20 |
| Student only | good | 5% | LIBOR + 2.70% | 6.42% | $112.20 |
APR & Repayment Example 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 4/08–6/08 and the LIBOR for this period is 3.60%.
COSIGNER
- Obtaining a cosigner is optional when you meet our credit criteria; if you don’t meet our credit criteria, a cosigner is required.
- A cosigner is the co-borrower of the loan and is jointly and severally liable for repayment of the loan.
- If the primary borrower is unable to pay, the cosigner is expected to make payments, including any late or collection fees.
- Each month, both the borrower and cosigner receive a bill statement and the payment status is reported to the national credit bureaus for both individuals.
- Both borrower and cosigner must sign all paperwork.
- Cosigner release is available upon request to qualified borrowers; borrowers must meet VSAC’s credit criteria after 48 months of active repayment.
*Borrower benefits described are for VSAC Residency loans approved before 5/19/08. VSAC evaluates borrower 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 interest rebate.
