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.
VSAC is no longer accepting new applications for our 2012-2013 Vermont Advantage Loan. We continue to process loan applications submitted by the May 7th deadline.
Note: This loan application may not be used for the 2013-2014 academic year. Another application will be made available for that academic year. Check back at www.vsac.org in early June to learn more about our private education loans for the 2013-2014 academic year and for late summer 2013 enrollment. Or sign up for e-mail notification as information becomes available on the 2013-2014 private education loans.
IMPORTANT: Students with a pending VSAC loan application, please note both of the following deadlines apply to you:
- VSAC must have received your fully completed loan application with a credit-approved cosigner by May 7, 2013; and
- You must be issued a Final Disclosure for the loan (requires completed school certification) by June 14, 2013.
A fixed interest rate of:
- 6.6% if you choose to begin principal and interest payments while enrolled
- 7.0% if you choose interest-only payments while enrolled
- 7.9% if you choose deferred repayment while enrolled
A one-time origination fee of 0%, 3%, or 5%, based on the credit rating of the cosigner. No fee for those meeting VSAC’s “excellent" credit standards.
A credit-approved cosigner is required. Cosigner release is available after 48 months of active repayment if the student borrower meets VSAC’s credit criteria.
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
VSAC is no longer accepting new applications for our 2012-2013 Vermont Advantage Loan.
Attending college in 2013-2014 or future academic years? Sign up now for e-mail notification to start receiving information about VSAC private loan programs.
Return to TopMinimum: $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
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.
The interest rate is fixed for the life of the loan; the rate will not vary according to market conditions. This rate is determined by the repayment option selected by the borrower on the application.
- Immediate repayment: 6.6%
- Interest-only payments: 7.0%
- Deferred repayment: 7.9%
The one-time origination fee is deducted from the loan amount and is determined by the strength of the cosigner’s credit.
- cosigner meeting VSAC's excellent credit standards: 0% fee
- cosigner meeting VSAC's better credit standards: 3% fee
- cosigner meeting VSAC's good credit standards: 5% fee
Sample Repayment Option Comparison - Vermont Advantage loan for 2012-2013 academic year
Example for loan approved for $10,000 and 0% origination fee.
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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.
Return to TopVSAC requires a credit-eligible cosigner for all Vermont Advantage loans.
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APR example for loan approved for $10,000
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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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