Stafford Loan for Law Students – 2007/2008 Academic Year
The Stafford loan is a federal loan available to undergraduate and graduate/professional students. The details provided below describe loans with a first disbursement before 7/1/08.
The VSAC Difference!
VSAC Stafford loans are zero fee loans. In addition, law students automatically receive an interest rebate equivalent to 1.3% of the outstanding principal balance each year during repayment.*
GET THE FACTS
HOW TO APPLY
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When you accept your school’s financial aid award package, indicate that VSAC is your lender (VSAC Lender Code: 830075; VSAC Guarantor Code: 750).
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Follow instructions from VSAC and your school regarding next steps.
ELIGIBILITY
You may apply if you are:
- enrolled or enrolling at least half-time at a VSAC-approved, ABA-accredited law school
- eligible for federal aid (have you completed the FAFSA?)
- a Vermont resident or attending school in Vermont or already a VSAC customer
BORROWER BENEFITS*
VSAC Stafford loans borrowed for the 2007-2008 school year automatically qualify!
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No Fees
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Annual 1.3% Rebate
Throughout repayment, law students automatically receive an annual interest rebate equivalent to 1.3% of the outstanding principal balance.
INTEREST RATE & FEES
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The interest rate is fixed at 6.80%.
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VSAC doesn't charge any federal origination or default fees; we pay for these fees on your behalf!
LOAN AMOUNTS
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REPAYMENT
- Repayment begins six months after you graduate or fall to less than half-time enrollment. 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.
- You may be eligible for temporary payment suspension through deferment and/or forbearance.
- There are no prepayment penalties.
- Stafford loans are eligible for federal loan consolidation.
SUBSIDIZED VS UNSUBSIDIZED LOANS
Your school determines your subsidized and unsubsidized Stafford loan eligibility; details of your eligibility will be included in the financial aid award package provided to you by your school. The same application is used for both loan types; you do not need to complete multiple applications.
What’s the difference between a subsidized Stafford loan and an unsubsidized Stafford loan?
Subsidized Stafford Loan
- You must have demonstrated financial need to borrow a subsidized Stafford loan.
- The federal government pays the interest while you are enrolled in school (at least half-time) and during grace and deferment periods. You are not required to make monthly payments until six months after you graduate or fall to less than half-time enrollment.
Unsubsidized Stafford Loan
- You may borrow an unsubsidized Stafford loan without demonstrating financial need.
- The federal government does not pay the interest; you are responsible for all interest. Interest begins to accumulate immediately upon disbursement. You are not required to make monthly payments until six months after you graduate or fall to less than half-time enrollment.
ADDITIONAL FINANCING OPTIONS
Interested in exploring additional financing options? Check out these additional sources of aid.
*Borrower benefits described are effective for Stafford loans for law students with a first disbursement date before 7/1/08. 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 rebate benefit.
