Stafford Loan – 2009/2010 Academic Year
The Stafford loan is a federal loan available to undergraduate and graduate/professional students. The details provided below describe VSAC Stafford Loans approved on or after 5/25/09 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
- 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
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.
BORROWER BENEFITS*
VSAC borrower benefits are easy to get and easy to keep!
Lower Fees
- .5% origination fee
- VSAC charges no federal default fee, we pay this fee on your behalf!
-
Go green - Savings for the environment and your wallet!
Receive a .25% interest rate reduction during repayment on your 2009/2010 Stafford loan when you sign up for auto debit and paperless statements for all your VSAC loans.*
Sign-up for savings today on myVSAC/Account Access.*
INTEREST RATE & FEES*
| Federal Interest Rates | Loan Type |
|---|---|
| 5.6% Payment Calculator |
Subsidized Stafford for undergraduate students |
| 6.8% Payment Calculator |
Subsidized Stafford for graduate/professional students |
| 6.8% Payment Calculator |
Unsubsidized Stafford for undergraduates and graduate/professional students |
| Federal Fees | Fee Type |
|---|---|
| .5% | Origination fee |
| 1.0% | Default fee |
Your default fee with VSAC is 0%! VSAC pays the default fee on your behalf.*
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LOAN Amounts
2009-2010 LOAN LIMITS
| Annual Loan Limits | |||
|---|---|---|---|
| All Students (subsidized/unsubsidized) |
Independent Students (additional unsubsidized) |
Dependent Students (additional unsubsidized) | |
| 1st Year Undergraduate | $3,500 | $6,000 | $2,000 |
| 2nd Year Undergraduate | $4,500 | $6,000 | $2,000 |
| Remaining Undergraduate | $5,500 | $7,000 | $2,000 |
| Graduate/Professional | $8,500 | $12,000 |
|
| Dependent Undergraduate | $31,000 | ||
| Independent Undergraduate | $57,500 | ||
|
Graduate/Professional Higher limits may apply to certain health professional students. |
$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 for Stafford loans approved on or after 5/25/09 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.
