VSAC offers fixed-rate private student loan
Vermont Student Assistance Corporation (VSAC) is again offering a fixed-rate private education loan for students who need to supplement their federal borrowing.
The Vermont Advantage loan for 2012–13 offers a choice of three competitively priced interest rates, depending on the repayment option the student chooses while attending school:
· 6.6 percent if the student begins making immediate monthly payments of both principal and interest
· 7 percent if the student makes interest-only payments
· 7.9 percent if the student defers repayment until after graduation.
The loan requires a cosigner and assesses a one-time origination fee, ranging from zero to 5 percent, depending on the cosigner’s credit rating.
Students eligible to borrow from VSAC are Vermont residents attending college in or out of state and nonresidents borrowing for attendance at a Vermont school. VSAC recommends that students submit their loan applications about eight weeks prior to the start of classes, although applications are accepted at any time.
VSAC urges students to consider all their federal education loan options prior to taking a private student loan such as the Vermont Advantage. If a private loan is needed, it’s important to compare lenders in order to ensure you get the best possible rate and terms for your situation. Rates in the marketplace can be fixed or variable; sometimes, lenders advertise low variable rates that are available only to a small number of borrowers or that have a high risk of rising if certain conditions are not met.
More details about the Vermont Advantage loan, including an online application, are available at vsac.org/vermontadvantageloan.