VSAC
February 23rd, 2009VSAC: frequently asked questions
See below for text or click here for PDF: vsac-faq
Financial aid administered by VSAC
Projected state grants for FY09 . . . . . . . . . . . . $19,153,758
Projected federal grants for FY09 . . . . . . . . . . . . . $146,873
Projected scholarships for FY09 . . . . . . . . . . . . . $6,400,000
Outstanding loan guarantees as of FY08 . . . $1,973,070,855
Projected loan guarantees for FY09. . . . . . . . . $304,700,000
Outstanding loans as of FY08 . . . . . . . . . . . . $2,084,472,170
Projected loan originations for FY09 . . . . . . . $452,600,000
Borrower benefits as of FY08 . . . . . . . . . . . . . $126,415,789
Projected benefits for FY09 . . . . . . . . . . . . . . . . $13,223,000
When was VSAC founded?
VSAC was established by the Vermont Legislature in 1965 as a public, nonprofit corporation.
What is VSAC’s purpose?
VSAC was created to provide Vermonters with the information and financing they need to pursue education or training beyond high school.VSAC provides the Vermont Higher Education
Investment Plan; career, education, and financial aid information and counseling;
need-based grants; public and private scholarships; and student and parent loans.
Is VSAC a state agency?
VSAC is often referred to as a “quasi” state agency. While VSAC is technically not
a state agency, it was established by the state, administers the state grant program,
and works closely with several state agencies to serve Vermonters.VSAC is managed
by an 11-member board of directors that includes two state legislators and the state
treasurer. Five of the remaining members are chosen by the governor; the other
three are chosen by the board itself.
What programs and services does VSAC offer?
• Vermont Higher Education Investment Plan: This is a qualified tuition
program under Section 529 of the Internal Revenue Code. It provides families
with state and federal tax incentives to save for college or other postsecondary
training. It accepts small contributions, offers several investment options, and
permits choice of institution.
• Information on careers, colleges, and financial aid: VSAC provides
information and counseling in individual and group settings to middle school
students, high school students, and adults. It also advises school counselors and
other professionals on the financial aid process. In addition to the Start Where
You Are college-access campaign,VSAC offers Web tools such as LearningExpress
Advantage and VT Guidance Central for anyone wishing to explore career and
college options.
• VSAC Resource Center: This center in Winooski provides assistance to walk-in customers,
enables students and families to complete financial aid forms online, and houses VSAC’s library,
which contains more than 7,600 college and career planning resources available for loan.Those
not able to come to the center may borrow VSAC’s resources through interlibrary loan at local
libraries throughout the state.
• Grants and scholarships: VSAC administers state grants to eligible students for full-time,
part-time, and non-degree study. VSAC also publicizes scholarships available to Vermonters
and either assists with or handles the administration of 164 private, state, and federally funded
scholarships.
• Education loans: VSAC guarantees, originates, and services Stafford (student) and PLUS
(parent) loans through the Federal Family Education Loan Program (FFELP). VSAC also
provides the private VSAC Advantage loan for students. VSAC works closely with borrowers
and schools to keep loan defaults to a minimum. The default rate for VSAC borrowers was
2.2 percent for federal fiscal year 2006, the most recent year for which figures are available.
This compares to a national average of 5.2 percent.
How much assistance does VSAC provide?
In FY08, VSAC provided more than $481 million in financial assistance through a combination
of more than 76,000 grant awards, loans, and scholarships.Thirty-four percent of all grant recipients
are adult students.
How many people work at VSAC?
VSAC has grown from a very small organization employing a handful of people to a relatively
large corporation employing a staff of 366 regular employees. (No staff salaries or administrative
costs are paid with state funds.)
Vermont Student
Assistance Corporation
10 East Allen Street,
PO Box 2000
Winooski, VT 05404
Toll-free 800-642-3177
In the Burlington area 655-9602
Online at www.vsac.org
E-mail us at info@vsac.org
Updated November 2008