Parent PLUS Loan – 2009/2010 Academic Year
The Parent PLUS loan is a federal loan available to parents of dependent undergraduate students. The details provided below describe Parent PLUS loans with a first disbursement on or after 7/1/09.
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GET THE FACTS
ELIGIBILITY
To be eligible for a VSAC loan, you must be one of the following:
- a Vermonter, or
- borrowing for attendance at a Vermont school, or
- an existing VSAC borrower
- a dependent undergraduate student
- eligible for federal aid (have you completed the FAFSA?)
- enrolled/accepted for enrollment at least half-time at an eligible school
HOW TO APPLY
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Apply Online or request Online Credit pre-approval
The Parent PLUS loan is a credit-based loan; we must review your credit. You may request a loan application (Master Promissory Note) during the online credit pre-approval process. -
Indicate that VSAC is your Lender
When your son/daughter accepts the school’s financial aid award package, they need to indicate that VSAC is their lender (VSAC Lender Code: 830075; VSAC Guarantor Code: 750).TIP: Use your son/daughter’s financial aid award package to determine how much to borrow. You are eligible to borrow up to the total cost of your son/daughter’s education less any financial aid. However, only borrow what you need and what you will comfortably be able to repay.
- Wait for instructions from VSAC and your son/daughter's school regarding next steps.
BORROWER BENEFITS*
VSAC borrower benefits are easy to get and easy to keep!
Lower Fees- 3% origination fee
- VSAC charges no federal default fees on loans for the 2009/2010 Academic Year*
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Go green - Savings for the environment and your wallet!
Receive a .25% interest rate reduction during repayment on your 2009/2010 PLUS loan when you sign up for auto debit and paperless statements for all your VSAC loans.*
Sign-up for the savings today on myVSAC/Account Access.*
INTEREST RATE & FEES*
Federal Interest Rate for Parent PLUS: 8.5%
- Get a .25% interest rate reduction on your new PLUS loan during repayment if you sign up for auto debit and paperless statements for all your VSAC loans.*
Federal Fees:
- Origination Fee: 3%
- Default fee: 1%
- With VSAC you pay a 0% Default fee. VSAC pays this fee on your behalf.*
LOAN AMOUNTS
The total amount which you can borrow is determined by the school’s financial aid office; you can borrow up to the total cost of your son/daughter’s education, less any other financial aid. There is no income requirement; you must work with your son/daughter's school to determine how much to borrow.
REPAYMENT
- Repayment begins approximately 45 days after the loan is fully disbursed. Notification will be send to you prior to the first due date. Postponement of repayment is available while your child is in school and for six months after he or she leaves school.
- 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.
- There are no prepayment penalties.
- You may be eligible for temporary payment suspension through deferment and/or forbearance; you may request payment suspension while your son/daughter is enrolled.
- Parent PLUS loans are eligible for federal loan consolidation.
- Parent PLUS loans are the legal responsibility of the parent and cannot be transferred to the student.
ENDORSER
- Obtaining an endorser is only necessary if the primary borrower cannot resolve their adverse credit issues.
- An endorser agrees to be secondarily liable for the loan if the borrower does not pay as agreed.
- Endorsers are reported to the credit bureaus as secondarily liable for the loan.
- Endorsers do not receive monthly bill statements but do receive past due notices.
- If the primary borrower is unable to pay, the endorser is expected to make payments, including any late or collection fees.
- Endorsers may request assistance with repayment if payments are not manageable.
- Endorsers are not required to sign paperwork or meet eligibility requirements for repayment options requested by the borrower.
- If the primary borrower consolidates the PLUS loan, the endorser will no longer be liable for the loan.
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 for PLUS loans with a first disbursement on or after 7/1/09. You must be less than 15 days past due on all your VSAC loans to be eligible for the interest rate reduction. Complete terms and conditions for the interest rate reduction are provided at the time of sign-up for paperless statements and automatic debit. VSAC reserves the right to modify, terminate, or discontinue borrower benefits at any time, at its sole discretion.
