Types of Aid

Federal Direct Loans

• Available to eligible students who complete the FAFSA form
• Subsidized loans do not accrue interest while the student is enrolled in school
• Unsubsidized loans do accrue interest, beginning from the time the loan is disbursed

Important Information:

• Interest rate: 4.99% (fixed) for 2022-2023
• Origination fee: 1.057%
• Maximum annual limit:
  • 1st year: $5,500, up to $3,500 of which can be subsidized
  • 2nd year: $6,500, up to $4,500 of which can be subsidized
  • 3rd/4th year: $7,500, up to $5,500 of which can be subsidized
• Repayment begins six months after a student graduates, leaves school, or drops below half-time enrollment
• Repayment period varies depending on the payment plan selected

Direct Parent PLUS Loans are government loans made available to parents of dependent undergraduate students. To qualify, a parent:

• Must be a U.S. citizen or eligible non-citizen
• Must not have an adverse credit history
• Must undergo a credit check
• If the credit is denied, the parent may reapply with an endorser, or the student may borrow an additional subsidized loan for $4,000-$5,000

Important Information:

• Interest rate: 7.54% (fixed) for 2022-2023
• Origination fee: 4.228%
• Maximum annual limit: total cost of attendance (budget) less any financial aid the student receives
• Repayment begins once the loan is fully disbursed, with an option to request a deferment
• Repayment period varies depending on plan selected

Private student loans are non-government loans from lenders such as banks, credit unions, and state agencies. Either the parent or the student can be the primary borrower. If the student is the borrower, a co-signer is usually required.

This summary of the differences explains federal versus private student loans.

Vassar College does not endorse or recommend any particular private lender. For a sampling of lenders used by Vassar students in recent years, visit ELM Select.

Important Information:

• Interest rate: varies. A comparison of interest rates (prime rate versus 3 month Libor) can be found at Financial Forecast Center
• Origination fee: varies
• Maximum annual limit: total cost of attendance (budget) less any financial aid the student receives
• Repayment begins: varies
• Repayment period: varies

• Apply for financial aid on Vassar’s Apply for Aid page
• Eligibility for federal loans is determined by completing the Free Application for Federal Student Aid (FAFSA).
• Avoid any scholarship/grant searches that require a fee. Look for free searches like fastweb
• Visit your state’s education department website to find out what grant or state-backed loans might be available to you. Some states offer education loans for their residents that are less costly than alternative education loans from private lenders
• Federal student and parent loans are less costly than alternative private education loans, and most of these loans require a co-signer if you want to reduce the cost of the loan. The Federal Parent Loan (PLUS) has a provision for loan forgiveness in the event that either the parent or student dies or suffers 100% disability. This is not offered by private student loans where a co-signer is required for the student