VSAC Issues Revenue Bonds

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VSAC Issues Revenue Bonds

Mon, 11/11/2002 - 8:00pm -- tim

The Vermont Student Assistance Corp. (VSAC) recently issued
$112.5 million in revenue bonds to meet the demand for new education
loans.
Most of the bond proceeds will be used to finance conventional
federal education loans, primarily Stafford loans for students and PLUS
loans for parents. A smaller share will be used to cover what are known as
alternative or supplemental loans. Increasingly, education expenses exceed
what students are able to cover using government grants and loans, forcing
students to turn to more costly alternative financing. "We remain
concerned about the amounts families are having to borrow to pay for
college, whether through the federal loan program or other sources," said
VSAC President Don Vickers said. "As a result, we will continue to
advocate at both the federal and state levels for more grants and
scholarships, which, unlike loans, do not have to be repaid."
Despite significant education debt levels in Vermont, VSAC borrowers continue to
maintain a good track record in repaying their loans. The most recent
default rate for VSAC borrowers is 3.1 percent, one of the lowest rates in
the nation.