Stafford Loan – 2008/2009 Academic Year
The Stafford loan is a federal loan available to undergraduate and graduate/professional students. The details provided below describe VSAC Stafford Loans with a first disbursement on or after 7/1/08.
The VSAC Difference!
- Outstanding Borrower Benefits – Check out how much you can save.
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- Convenient Online Services – View your account and make payments online.
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GET THE FACTS
HOW TO APPLY
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Apply Online!
VERMONT RESIDENTS: Undergraduate students should complete the Vermont Grant Application before applying for a loan. -
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:
- an undergraduate or graduate/professional 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 already a VSAC customer
You may also be eligible if you are taking courses to enter a degree program. Contact your financial aid officer for more information.
BORROWER BENEFITS*
VSAC borrower benefits are easy to get and easy to keep!
No Fees- VSAC doesn’t charge any federal origination or default fees; we pay these fees on your behalf!
- VSAC automatically reduces the federal interest rate by 1% when your loan enters repayment.
- VSAC’s repayment interest rates:**
- 5.0% for Subsidized Stafford loans for undergraduates
- 5.8% for Subsidized Stafford loans for graduates
- 5.8% for Unsubsidized Stafford loans for undergraduates & graduates
- Keep the lower interest rate as long as you make your payments within 21 days of your due date.
- If you make a late payment; get the lower interest rate back by making 12 consecutive on-time payments.
INTEREST RATE & FEES*
| Loan Type | Federal Interest Rate |
VSAC’s Interest Rate** |
Federal Fees*** | Federal Fees Borrowing with VSAC |
|---|---|---|---|---|
| Subsidized Stafford for undergraduate students |
6.0% | 5.0% | 2.0% | 0% |
| Subsidized Stafford for graduate/professional students |
6.8% | 5.8% | 2.0% | 0% |
| Unsubsidized Stafford for undergraduates and graduates/professional students |
6.8% | 5.8% | 2.0% | 0% |
LOAN Amounts
2008-2009 LOAN LIMITS
| Annual Loan Limits | ||
|---|---|---|
| All Students (subsidized/unsubsidized) |
Independent Students (additional unsubsidized) | |
| 1st Year Undergraduate | $3,500 | $4,000 |
| 2nd Year Undergraduate | $4,500 | $4,000 |
| Remaining Undergraduate | $5,500 | $5,000 |
| Graduate/Professional | $8,500 | $12,000 |
| Dependent Undergraduate | $23,000 | |
| Independent Undergraduate | $46,000 | |
| Graduate/Professional | $138,500 | |
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
For Undergraduate Students
For Graduate/Professional Students
Interested in exploring additional financing options? Check out these additional sources of aid.
*Borrower benefits described are effective for Stafford loans with a first disbursement on or after 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.
**Quoted interest rates include the 1% interest rate reduction available upon repayment and thereafter as long as you make on-time payments.
***The federal fees listed are for Stafford loans with a first disbursement from 7/1/08 to 6/30/09.
