Student Loan Programs in Vermont
A Vermont Institution Comes of Age
The Vermont Student Assistance Corporation has been helping Vermont students figure out how to best fund their college educations for over four decades. The VSAC now offers a one-stop-shop where parents and students may explore college funding options; use free online financial tools and start saving for college from day one.
VSAC Loan Products
VSAC provides an assortment of student loans that offer something for everyone. Few students can manage just on the merit of federal funds, which typically fall shockingly short of covering college tuition. And besides applying for scholarships and grants, many students consider resorting to private loans through their bank. While these are convenient and may serve to shore up college funds, nevertheless they are often high-end loans less designed for students and more about running a profitable business.
Advantage Loans: Flagship Loan Program
VSAC Advantage Loans are the flagship student loan, offering the widest eligibility possible in combination with comparatively low interest rates and amenable payment options. Applicants may be pursuing an undergraduate or graduate degree or a certificate program. Students are required to apply for federal funding first and then apply for VSAC loans. Advantage Loans may be used to pay up to the cost of tuition once federal funds are used against the costs. Students must be Vermont residents attending either a college in state or out of state, or out of state residents attending a college in Vermont.
Applying
VSAC loans are credit-based, meaning you must submit to a credit check when applying. If you have less than stellar credit, a high debt-to-income ratio or no established credit, you may be required to find a co-borrower. Many students choose a parent, guardian or other relative or friend who does possess good credit and who knows the student well enough to agree to the financial commitment. Applicants may download an application online.
Loan Terms
Typically students are expected to make monthly payments that only cover the interest on the loan. These begin as soon as your loan is disbursed to your institution and continue for six months beyond your graduation, typically called the grace period. Once your grace period is up, you are expected to start full repayment of the loan, which may take between 15 and 30 years depending on your agreement with VSAC.
Special Career Loans
Students who are pursuing traditionally lengthy and costly programs of study now have the opportunity to apply for customized student loans that make their financial obligations less stressful:
- The Law Loan offers law students auxiliary, low-interest, funds to cover the increasing costs of a good law education. Grace period for repayment is nine months after graduation, which allows time to get a job and earn some money before repayment kicks in. The Bar Loan is a version of the Law Loan available to those students still studying for the bar exam.
- The Medical Loan is similar to the Law Loan in its terms. The Residency Loan is a version of the same that helps offset tuition costs for med students locked in a residency program.
