Payment Increase FAQs

Q: Why did my payments increase now?
A: Because variable interest rates on student loans have been rising, VSAC determined it was important to evaluate our customers’ monthly loan payments to be sure their loans will pay off in the remaining term.

Q: I have a fixed interest rate. Why did my payment increase?
A: Frequency of payments and/or the frequency of repayment options could impact your monthly payment amount.

Q: Is it possible for my payment to increase in the future?
A: Yes. VSAC will periodically reevaluate your monthly loan payment to ensure your loan(s) will pay off in the remaining term.

Q: Is this a penalty?
A: No. Payment increases are a result of determining the payment amount that will pay your loan(s) off in full within the remaining term of your loan(s).

Q: Is there a way to lower my monthly loan payment?
A: Yes. There are various repayment options that can assist you if you need to temporarily reduce your monthly loan payment. To learn more, go to our home page at www.vsac.org and click on Loan Repayment.

Q: Can I lock into a fixed interest rate?
A: If your federal education loans have a variable interest rate, you may lock in a fixed interest rate by combining one or more of your education loans into a Loan Consolidation with the Department of Education’s Direct Loan Program.

Q: I am in a reduced payment plan. When will I be billed for my new payment amount?
A: If you are currently approved to temporarily make reduced payments, your new payment amount will be billed after your reduced payment plan ends.

Q: I am in a deferment. When will I be billed for my new payment amount?
A: If your loan(s) is in an approved deferment, your new payment amount will be billed after your deferment ends.

Q: I am in forbearance. When will I be billed for my new payment amount?
A: If your loan(s) is in an approved forbearance, your new payment amount will be billed after your forbearance ends.

Q: I am in a Graduated Repayment Schedule. Will I receive more information about my repayment schedule?
A: VSAC will mail you additional information regarding the repayment schedule of your loan(s).

Q: I am currently enrolled in the VSAC Elect Pay program. When will my new payment amount be debited?
A: Your new payment amount will automatically debit and you will be notified by your bill statement. Please pay careful attention to your monthly statements.