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The Vermont Advantage
VSAC’s fixed-rate education loan
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For current academic year 2013-2014

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Students should first apply for federal Stafford loans through their schools’ financial aid offices. Need additional financing? VSAC can help with the Vermont Advantage loan.

THE VERMONT ADVANTAGE STUDENT LOAN FOR ACADEMIC YEAR 2013-2014:


DON’T DELAY!

Academic year 2013-2014 and early summer 2014
Please review the important deadlines below. You must:
  • ensure VSAC receives your fully completed loan application with a credit-approved cosigner by May 6, 2014; and
  • be issued a Final Approval Disclosure for the loan (requires completed school certification) by June 13, 2014.

 

Sign up for e-mail notification for academic year 2014-2015 parent
and student loan information.

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Interest Rates & Fees - Vermont Advantage Loan for 2013-2014 school year
Interest Rates & Fees - Vermont Advantage Loan for 2013-2014 school year

The Vermont Advantage Loan has a fixed interest rate determined by the repayment option selected by the borrower. The interest rate is fixed for the life of the loan and will not vary according to market conditions.

An origination fee, deducted from the loan amount at disbursement, is determined by the strength of the cosigner’s credit.

Repayment Option  Fixed Interest Rate  Origination Fee (determined by strength of cosigner’s credit)  Annual Percentage Rate-APR 
Principal & Interest Payments while enrolled 5.6% 0%, 3% or 5% 5.60%-6.38%
Interest-only Payments while enrolled 6.0% 0%, 3% or 5% 6.00%-6.61%
Deferred Payment while enrolled 6.9% 0%, 3% or 5% 6.65%-7.17%
 

Sample Repayment Option Comparison - Vermont Advantage loan for 2013-2014 academic year

Example for loan approved for $10,000 and 0% origination fee.

Repayment option*  Interest rate  Estimated finance charge  Estimated payment schedule  When loan will be paid off (assuming 4 years of enrollment) Estimated total amount paid 
Immediate repayment  5.6% $4,940 180 payments of $83 starting while enrolled 2029 $14,940
Interest-only payments while enrolled 6.0% $7,359 40 monthly interest-only payments of $50 while enrolled

180 payments of $85
2032 $17,359
Deferred repayment while enrolled 6.9% $9,956 40 months of no payments while enrolled

180 payments of $111 
2032 $19,956
 

Repayment assumptions:

  • Loan repayment term is 180 months and begins when full payments are due (for loans approved for less than $10,000, the term is 120 months).
  • Two equal disbursements of $5000.00, one in September and one in January, and outstanding interest is capitalized at the final disbursement. For the Interest-Only payment and Deferred-Repayment options, borrower is enrolled for 44 months.
  • All payments are made on time.

* Each repayment option is subject to fund availability. Funds will be awarded on a first-come, first-served basis. Interest rates for interest-only payment and deferred-repayment loans are higher than interest rates on immediate-repayment loans and result in a higher cost of borrowing. Interest begins accruing after each loan disbursement. Loans made under the deferred-repayment option will remain deferred as long as the student remains enrolled in at least half-time status at an eligible school.

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Eligibility
Eligibility

To be eligible for the Vermont Advantage loan, you must be a student who is:

  • a Vermont resident attending college in or out of state, or
  • a nonresident borrowing for attendance at a Vermont school

and is:

  • a U.S. citizen or eligible non-citizen
  • applying with a credit-approved cosigner
  • an undergraduate or graduate/professional student
  • enrolled/enrolling at least half time at an eligible postsecondary school
  • eligible for federal financial aid
  • not in default on a VSAC loan
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How to Apply
How to Apply

Apply now for the Vermont Advantage loan by completing the online application.

View frequently asked questions about the Vermont Advantage loan process.

Sign up now for e-mail notification to start receiving information about VSAC loan programs.

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Loan Amounts
Loan Amounts

Minimum: $200

Maximum: Up to the cost of your education, less any other aid, as determined by your financial aid office.

When calculating your requested loan amount, try to project your budget for the full academic year or loan period. Ultimately, your school will certify the loan amount and schedule disbursements based on your enrollment period. Budgeting for the academic year may:

  • save you time
  • reduce paperwork and correspondence for you and your cosigner
  • prevent delays in your second semester disbursement
  • minimize credit bureau inquiries
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Repayment Options
Repayment Options

Borrowers have three options for repayment:

  • Immediate repayment of principal and interest while the student is enrolled. The first monthly payment is due within 45 days of the final disbursement to the school. This is the least expensive option.
  • Interest-only payments while the student is enrolled at least half time. The first monthly payment of interest is due within 45 days of the final disbursement to the school.
  • Deferred repayment while the student is enrolled at least half time. The first monthly payment of principal and interest is due within 45 days after at least half-time enrollment ends. This is the most expensive option.

The borrower selects the desired repayment option on the loan application. The borrower may not change his or her repayment option once the selection is made.

  • The length of the repayment term is determined by the loan amount:
    • (a) 10 years for loans up to $9,999
    • (b) 15 years for loans of $10,000 and above
  • Payments are required monthly. There are no prepayment penalties.
  • Any outstanding interest is added to the principal (it is "capitalized") when the loan enters repayment.
  • Repayment periods cannot be extended beyond the original term, other than through periods of approved hardship forbearance.
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Cosigner Information
Cosigner Information

VSAC requires a credit-eligible cosigner for all Vermont Advantage loans.

A student applicant needs a
cosigner to …
 
apply for a Vermont Advantage loan.
A cosigner …  is a U.S. citizen or eligible non-citizen (frequently the student applicant’s parent or guardian) who is equally responsible for repaying the loan.
A cosigner with excellent credit
will …
 
enable the student applicant to get a 0% fee loan.
A cosigner who is able to make payments while the student is enrolled will …  enable the student applicant to get the lowest interest rate (5.6%).
Cosigner’s responsibilities
include …
 
(1) make payments, including any late or collection fees if the student borrower is unable to pay.
(2) sign all paperwork along with the student borrower.
As a cosigner, expect to …  (1) receive each month, the same bill statement for the loan that the student borrower receives.
(2) have the loan’s payment status reported to national credit bureaus for both the cosigner and the student borrower.
Once a cosigner, always a cosigner unless …  cosigner release is available upon request to qualified student borrowers after 48 months of active repayment; the student borrower must meet VSAC’s credit criteria.
 
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APR & Repayment Example
APR & Repayment Example - Vermont Advantage Loan for 2013-2014 school year

APR example for loan approved for $10,000

Repayment Option*  Interest Rate  Fee  APR  Finance Charge  Monthly Interest-Only Payments  Monthly Full Payments 
Principal & Interest Payments while enrolled with:  5.6%         Total amount paid $14,940.03 
Excellent Credit 0% 5.60% $4,940.03 n/a 179 @ $83.01 and
1 @ $81.24
Better Credit 3% 6.06% $5,240.03 n/a 179 @ $83.01 and
1 @ $81.24
Good Credit 5% 6.38% $5,440.03 n/a 179 @ $83.01 and
1 @ $81.24
Interest-Only Payments while enrolled with:  6.0%         Total amount paid $17,359.49 
Excellent Credit 0% 6.00% $7,359.49 40 @ $50.48 179 @ $85.23 and
1 @ $84.11
Better Credit 3% 6.36% $7,659.49 40 @ $50.48 179 @ $85.23 and
1 @ $84.11
Good Credit 5% 6.61% $7,859.49 40 @ $50.48 179 @ $85.23 and
1 @ $84.11
Deferred Payments while enrolled with:  6.9%         Total amount paid $19,956.09 
Excellent Credit 0% 6.65% $9,956.09 n/a 179 @ $110.87 and
1 @ $110.36
Better Credit 3% 6.96% $10,256.09 n/a 179 @ $110.87 and
1 @ $110.36
Good Credit 5% 7.17% $10,456.09 n/a 179 @ $110.87 and
1 @ $110.36
 

Repayment Assumptions:

  • Origination fees, when applicable, are deducted from the loan disbursement(s).
  • Loan repayment term is 180 months and begins when full payments are due (for loans approved for less than $10,000, the term is 120 months).
  • Two equal disbursements of $5000.00, one in September and one in January, and outstanding interest is capitalized at the final disbursement. For Interest-Only Payment and Deferred Payment options, borrower is enrolled for 44 months.
  • All payments are made on time.

* Each repayment option is subject to fund availability. Funds will be awarded on a first-come, first-served basis. Interest rates for interest-only payment and deferred-repayment loans are higher than interest rates on immediate-repayment loans and result in a higher cost of borrowing. Interest begins accruing after each loan disbursement. Loans made under the deferred-repayment option will remain deferred as long as the student remains enrolled in at least half-time status at an eligible school.

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THE VERMONT ADVANTAGE PARENT & STUDENT LOANS FOR ACADEMIC YEAR 2014-2015:

Vermont Advantage Parent Loan: NEW! For 2014-2015, VSAC will offer a loan for parents interested in borrowing to help finance their child’s education.

Vermont Advantage Loan: VSAC will continue to offer the Vermont Advantage Loan for students with a credit-worthy cosigner.

Sign up now for e-mail information about parent loan and student loan details!



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