VSAC
Vermont Loans, Grants, and Scholarships for College

VSAC- Vermont Student Assistance Corporation

The Vermont Student Assistance Corporation is your state's higher education agency.

They originated and serviced federal student loans under the Federal Family Education Loan Program (FFELP).

Now that the FFELP has ended and all federal loans are made under the federal Direct student loans program, VSAC is offering new, fixed-rate private student loans for the 2010-2011 school year.

These loans may only be applied for by students who have reached their maximum federal student loan limits. These are the:

Advantage, Bar, and Residency Loans

• be a resident of Vermont or attend a Vermont school or already a borrower of one of these loans
• have a credit-approved cosigner
• have filled out your FAFSA and are receiving the maximum Stafford amount
• are enrolled at least half-time

Fees on the Advantage loans depend on the cosigner's credit rating:

1. Excellent- 0% fee
2. Better- 3% fee
3. Satisfactory- 5% fee

Interest rates depend on which repayment plan the student chooses:

1. Principal and interest payments while in school- 6.95%
2. Interest only payments while in school- 7.50%
3. All payments deferred while in school- 7.75%

The Bar loan has an interest rate of the LIBOR + 6% (6.45% until Dec. 2009).

The Residency Loan has an interest rate of the LIBOR + 5% (5.45% until Dec. 2009).

Vermont Grants, Scholarships for College

- for full time undergraduates (except for grads enrolled in the University of Vermont College of Medicine or a Doctor of Veterinary medicine program)

• need-based grants for students whose individual or family contribution does not exceed $21,750
• awards range from $700 to $11,200
• can be used for schools within Vermont or out-of-state

Vermont Part-Time Grants

- for part-time undergraduates (less than 12 credits) enrolled or accepted in a B.A. or certificate program

• amounts vary depending on the number of credit-hours

Vermont Non-Degree Grants

- for Vermont citizens taking non-degree courses that will lead to better employment or further study.

• based on financial need and cost of the course
• 2 grants per financial aid school year
• up to 6 grants maximum

Vermont Incentive grants have easier income guidelines than do Pell grant qualifications.

The FAFSA is required (check your FAFSA deadline)for these state grants, but there are also special free grant applications that must be completed.

Some of these programs only distribute 1 award per year; others do as many as 95. These are easy scholarships to apply for. You will need to:

• complete your FAFSA if financial need is part of the criteria
• submit the Unified Scholarship Application (USA) (only once, even if you are apply for several scholarships)
• get your high school (or home school) to file the Academic Certification (Att A) for any academic-based awards for high school students
• round up your scholarship letters of recommendation (You will need 1 or 2, usually.)
• write a scholarship essay (or 2 or 3)
• get an official transcript from any schools you've attended
• send copies of federal income tax returns (you and/or your parents) for any financial need programs

You cannot apply online for these scholarships- they must be mailed. You can download the forms along with a list of scholarships including descriptions, number of awards available and estimates of the number of applicants for each.

(There is also a drawing for 3 $1,000 scholarships for students who get their applications in by Feb. 12, 2010.)

VSAC Student Loan Forgiveness Programs

- for students from racially diverse ethnic backgrounds who agree to become teachers in Vermont public schools

- agreement is to teach for at least one year- can be used for up to three years of cancellation at the rate of $4,000 per year

Vermont Educational Loan Repayment Program for Primary Care Practitioners

- Vermont residents who are:

• primary care physicians
• psychiatrists
• advanced practice registered nurses
• certified nurse midwives
• physician assistants

Vermont Educational Loan Repayment Program for Dentists

- same as Primary Care only for dentists

Vermont Educational Loan Repayment Program for Nurses

- Vermont resident nurses (LPNs or RNs) can receive up to $10,000 of loan payments per year (up to 4 years) for a commitment to work at the rate of one year for each year of payment.

Vermont Educational Loan Repayment Program for Nurse Educators/Faculty

- Vermont nurses employed as nurse educator/faculty (including adjunct faculty) in nursing at Castleton State College, Norwich University, Vermont Technical College, Southern Vermont College, or the University of Vermont, can receive up to $20,000 of loan payments per year (up to 6 years) for a commitment to work at the rate of one year for each year of payment.

Freeman Educational Loan Repayment for Physicians

- Physicians who are eligible for the Primary Care Practitioners loan repayment will automatically be considered for this program too.

- Vermont physicians who are not practicing primary care specialties should apply under this program for loan repayment. They can receive up to $20,000 of loan payments per year (up to 10 years) for a commitment to work at the rate of one year for each year of payment.


All student loan repayment funds through these programs are taxable and paid directly to the lender.