VSAC Financial Aid FAQs

I have to borrow money to pay my college bills. Can I save any money by shopping around for loans? Are all loans the same?

All education loans are not the same. There are two types of education loans; federal and private. Congress sets the standard interest rates and fees for federal education loans. Private loans are offered by private lenders, including banks, credit unions, or organizations such as VSAC. Individual lenders determine the interest rates and fees for their private education loans.

Private education loans may be an option if grants, scholarships, and federal loans don’t cover all education costs or if a student’s family does not qualify for a federal PLUS loan. Eligibility for a private student loan often requires a credit check.

Federal education loans can be less expensive than private loans and have benefits that private student loans do not offer. Students should exhaust their eligibility for federal Stafford loans before choosing private student loans.

If I receive a scholarship, will it affect the amount of financial aid I receive from my college?

Scholarships are usually looked at in one of three ways: to fill "unmet need," meaning need for which you or your parents will have to borrow more money to reduce the amount of money you need to borrow to attend college; to reduce your college's grant assistance to you. Call your school's financial aid office for specific information on how your school treats scholarships.

I plan to go to school part-time. Can I get financial aid?

Almost all aid programs are available to students who attend school at least half-time. Some institutions give preference to full-time students. VSAC administers a Part-Time Grant Program for degree-students taking fewer than 12 credits of course work per semester.

I am not living with my parents, and receive no support from them. Can I file as a self-supporting student?

If you are under 24 years of age, you must file as a dependent student unless you meet certain criteria. Get a Free Application for Federal Student Aid (FAFSA) for detailed information. If you do not meet the criteria on the FAFSA, contact your school and VSAC directly to discuss your situation.

I'm a Vermont resident. Am I eligible for a VSAC grant if I go to a school outside Vermont?

Yes. VSAC grants are "portable," meaning they can be used at any approved school within or outside Vermont.
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Where can I mail my loan payment?

If you have a VSAC loan, you can mail a payment, with or without a statement coupon, to the address below. Please note the account holder's name and account number on your check.

VSAC Payments
PO Box 7501
Bennington, VT 05201-7501

I'm having trouble meeting my monthly loan payments. What should I do?

Call VSAC. We can work with you to get your payments under control. Flexible repayment options include reducing or postponing payments, or combining several loans into one account with a more affordable payment. The worst thing to do is not to call. If you wait and hope things will get better by themselves, you will damage your credit history and could slip into default.

We're here to help! Please contact a VSAC customer relations counselor.

I have defaulted on a student loan. Am I eligible for additional financial aid so that I may return to school?

If you arrange a payment schedule with the holder of your defaulted loan and if you make the payments on time, you may regain eligibility for additional financial aid, which includes grants and loans. VSAC has three specialized programs for defaulted borrowers, one of which you may qualify for.

Interested borrowers should contact the Default Collections Department of VSAC to receive more information about these programs and their requirements.
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We received the maximum HOPE credit of $1,500, but our family contribution went up. Are colleges taking the HOPE credit away from people by essentially considering it as income? (The HOPE credit is a federal credit to help families pay college costs.) The FAFSA (Free Application for Federal Student Aid) asks for information on the HOPE credit so it knows to ignore that as part of your income for federal aid purposes. However, individual schools may decide, on their own, to count the credit as income since it does represent greater disposable income and therefore a greater ability to pay college bills.

My husband is currently going back to school. He's part-time at CCV (Community College of Vermont). He's thinking of transferring to another school in a few years. Must he resubmit paperwork?

Students must apply for financial aid every year they're in school, whether they transfer or not.

Are grant decisions based solely on income?

No. VSAC looks at income as well as assets, size of family, how many family members will be in college next year, the age of the older parent, the cost of the school the student is attending, and several other factors. Grades do not enter into grant decisions. For scholarships, grades may be a criterion, however. VSAC does administer about $2.3 million annually in scholarship aid.
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