The Vermont Student Assistance Corp. (VSAC) has been in business since 1965. The organization helps students from Vermont save, plan, and pay for higher education both in-state and out-of-state. That includes traditional college as well as other types of training. It has counseled hundreds of thousands of students and backed $573.7 million in private loans. It has also awarded close to $630 million in grants and scholarships.
If you need money to go to college, you might be eligible for the organization’s fixed-rate education loan. Referred to as VSAC’s Vermont Advantage Loan, this loan is open to both students and parents. These loans are available to those who are attending a school in Vermont and for Vermont residents attending colleges in the U.S. and abroad. They are well known for their low fees and low fixed rates. Find out more about these loans before you commit to borrowing money for school.
An Inside Look at VSAC Student Loans
If you choose to get VSAC’s Vermont Advantage Student Loan, you will have three payment options. First, you can choose the Immediate option. If you go with this option, you will start repaying the principal and interest immediately. This is the best option if you want to get out of debt quickly, but many students don’t have the resources to start paying as soon as they take the loan out.
If you choose Interest Only, you will make monthly interest payments for as long as you are enrolled in school. You can also choose Deferred. Then, you won’t have to make any principal or interest payments until you are done with school.
Your interest rate depends on your payment option. You will get the best rate if you choose the Immediate option. The current fixed APR ranges from 5.8 percent to 6.58 percent. You will pay a fixed APR of 6.2 percent to 6.82 percent if you go with Interest Only and 6.83 percent to 7.36 percent with Deferred. Regardless of the repayment option chosen, you will need to get a cosigner to qualify for this loan.
If you are a parent applying for a loan, you will have two options. You can go with Immediate or Delayed. If you choose Immediate, you will currently pay a fixed APR of 5.8 to 6.58 percent, which is the same as it is for students. If you choose Delayed, you will pay a fixed APR of 6.91 percent to 7.61 percent. This option allows you to wait 12 months before making payments. This is a good choice if you need a little time to get your finances straight.
Other Financial Products Offered by VSAC
You might be most interested in the VSAC student loan, but the organization also offers other financial options that are worth considering. VSAC will also help you get grants and scholarships. It can even help you with applying for a federal student loan. If you need money for college, this organization will go out of their way to make it a reality.
Students of all ages enjoy the benefits that come with getting a VSAC student loan. The low fixed interest rates are a huge benefit. You don’t know what your interest rate will be with a federal student loan since the government doesn’t provide APR information. In the past, though, students have paid as much as 7 percent. You can get a loan for much lower through VSAC.
The ability to choose interest-only payments is also a huge benefit. Federal loans only come with Deferred or Immediate payment options. While lots of students can’t afford to make immediate payments, many do like to pay the interest so they don’t have shell shock after they graduate.
The no to low loan origination fees are also a reason to consider this loan. Federal student loans always include an origination fee, and that fee is over 4 percent. If you have good credit, you won’t have to worry about dealing with an origination fee.
These loans also offer some flexibility when it comes to repayment. You might be able to get a temporary postponement if you experience a financial hardship. You will need to contact VSAC to see if you qualify.
Finally, many people appreciate that this is a local service. Instead of contacting some business located in another state, everything is done in Vermont. Also, it is operated by a nonprofit, so you won’t feel like you are getting charged high rates so a business can make a profit. Instead, the loans are actually provided to better the people of Vermont.
The Bottom Line
Paying for college can be a strain, but it is easier with a VSAC student loan. Whether you are a parent or a student, you can get the necessary funding through VSAC. Then, you can focus on college or trade school instead of spending your time trying to figure out how you’re going to pay for the next semester. That will make it much easier to do well in school.