VSAC Offers Competitively Priced Private Student Loan for 2010-11
July 7th, 2010WINOOSKI — The Vermont Student Assistance Corporation (VSAC) will go to the bond market within the next two weeks to raise capital to finance about $23 million in private student loans for the 2010-11 academic year.
For many years, VSAC offered both federal education loans for students and parents and private student loans to supplement federal borrowing. As of July 1, federal loans are available only through the government, while private loans remain the purview of financial institutions and nonprofits like VSAC.
“Given the demand, VSAC is very happy to be able to offer a private student loan this year,” said Don Vickers, VSAC president and CEO. “We are especially pleased that our private student loan will carry a lower interest rate than the federal PLUS loan for parents and grad students.” The PLUS loan for 2010-11 has a fixed interest rate of 7.9 percent and a 4 percent fee.
VSAC’s private student loan, the Vermont Advantage Loan, will offer a fixed interest rate that varies according to the repayment option chosen. Options are paying principal and interest while enrolled, paying only the interest while enrolled, or deferring payment until leaving school. Fees range from zero to 5 percent, based on the credit rating of the student and his or her cosigner.
Students eligible to borrow from VSAC are Vermont residents attending any college, nonresidents attending Vermont institutions, and previous VSAC borrowers.
VSAC expects to have the Vermont Advantage Loan application available later in July. Students or families who want to be notified when the application is ready may e-mail VSAC at privateloaninfo@vsac.org. Periodic updates will also be available on the VSAC Web site at www.vsac.org.