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Suggested Lenders

Information on Student Loans & Suggested Lenders � 09-10

Beginning with the 2010-2011 VTC is pleased to announce that we will be participating in the Federal Direct Loan Program (DL). All incoming students new to VTC will have their loans processed through the William D. Ford Direct Loan Process.

The information below is for students choosing their lenders in 09-10. In 2010-2011 returning students will have loans processed through their same lender as last year unless otherwise requested. There are many student loan lenders available to students (Federal Stafford loans) and parents (Federal PLUS loans). How do you choose? Here are some factors to consider:

For sure is better than maybe.

Whatever fee or interest rate reduction the lender is offering, are you going to definitely get that benefit or only if you do something in particular, such as make a certain number of on-time payments? What percentage of borrowers actually qualify for each of the lender�s benefits? And when you are in repayment, does the lender keep your loan while you are in repayment or sell it to another loan company?

Sooner is better than later.

When do you receive the benefits? If a lender waives the upfront fees, you receive the full amount of the loan when it is disbursed to the college. If the benefit is when you are in repayment on your loan, how many consecutive, on-time payments do you need to make before receiving the benefit? And what happens to that benefit if you are a few days late with a payment?

More is better than less.

With all the borrower benefits offered by the lender for which you qualify, how much money would you save if you borrowed $10,000 from that lender?

Other factors.

Some students and parents have told us about other factors they consider when selecting a student loan lender:

Is the lender a for-profit lender or a non-profit (non-profits frequently put funding into non-loan programs to help with college planning and financing). Does the lender�s organization offer other programs that help student and families with going on to college?
What is the lender�s level of customer service? Does the lender actively contact you when there is a potential problem, or wait to hear from you? Can you easily get information over the phone or on-line?
How easy is the application process? Does the lender have an on-line master promissory note with electronic signature (�e-sign�)?
We are asked what lender our students choose most often. Historically, this has been the Vermont Student Assistance Corporation, but we encourage you to compare the benefits of all three suggested lenders and any others in which you are interested.

Vermont Technical College, as a member of the Vermont State College system, annually evaluates these and other factors to develop a suggested list of lenders for your consideration. Vermont Tech has done the research necessary to identify several reputable lenders that provide among the best rates, service and convenience for our students. VTC will certify a loan with ANY lender you choose. Students are not required to use any of the lenders on our list and will suffer no penalty for choosing a lender that is not. For the 2009-2010 academic year we evaluated over 15 regional and national lenders and selected three as our suggested lenders based on the excellence of their benefits and customer service. The chart below contains details of our four suggested lenders: VSAC, Wachovia, & EdAmerica.

For the 2009-2010 academic year we offer four suggested lenders for your consideration. You can, of course, select any FFELP lender, and not just one of the suggested lenders; simply supply the lender name, address and lender ID to our office.

The following four lenders are the Vermont Technical College and Vermont State College suggested lenders.

Lender	Vermont Student Assistance Corporation (VSAC) Location: Vermont Available to Vermont and out of state borrowers	Discover Student Loans Location: Utah Available to Vermont and out of state borrowers	EdAmerica Location: Tennessee Available to Vermont and out of state borrowers	Sallie Mae Location: Virginia Available to Vermont and out of state borrowers
Upfront Fees and Interest Rate
Subsidized Stafford	0.5 % origination fee 0% default fee 5.6% interest rate	For applications received prior to 09/01/09 0% origination fee 0% default fee with participating guarantor 5.6% interest rate For applications received on or after 09/01/09 0.5% origination fee 1% default fee 5.6% interest rate	0.5% origination fee 0% default fee with participating guarantor 5.6% interest rate	0.5% origination fee 0% default fee with participating guarantor 5.6% interest rate
Unsubsidized Stafford	0.5 % origination fee 0% default fee 6.8% interest rate	For applications received prior to 09/01/09 0% origination fee 0% default fee with participating guarantor 6.8% interest rate For applications received on or after 09/01/09 0.5% origination fee 1% default fee 6.8% interest rate	0.5% origination fee 0% default fee with participating guarantor 6.8% interest rate	0.5% origination fee 0% default fee with participating guarantor 6.8% interest rate
Graduate Student PLUS	3% origination fee 0% default fee 8.5% interest rate	For applications received prior to 09/01/09 3% origination fee 0% default fee with participating guarantor 8.25% interest rate For applications received on or after 09/01/09 3% origination fee 1% default fee 8.5% interest rate	3% origination fee 0% default fee with participating guarantor 8.5% interest rate	3% origination fee 0% default fee with participating guarantor 8.5% interest rate
Parent PLUS	3% origination fee 0% default fee 8.5% interest rate	For applications received prior to 09/01/09 3% origination fee 0% default fee with participating guarantor 8.25% interest rate For applications received on or after 09/01/09 3% origination fee 1% default fee 8.5%interest rate	3% origination fee 0% default fee with participating guarantor 8.5% interest rate	3% origination fee 0% default fee with participating guarantor 8.5% interest rate
Other Borrower Benefits
Check lender website for benefit changes, various details on conditions under which you might lose this benefit and how you could regain it.	0.25% interest rate reduction when borrower enrolls in electronic loan repayment	0.25% interest rate reduction when borrower enrolls in electronic loan repayment	0.25% interest rate reduction when borrower enrolls in electronic loan repayment	0.25% interest rate reduction when borrower enrolls in electronic loan repayment
Customer Service/Organizational Items
Non-profit agency	Yes	No	Yes	No
Services Your loans	Yes	No	Yes, using a partner agency	Yes
On-line/toll free options	Yes	Yes	Yes	Yes

** Please check the lender�s website for specifics concerning the borrower benefits.

Randolph Center / Williston

800.442.8821

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