VSAC Issues Revenue Bonds

first_imgThe Vermont Student Assistance Corp. (VSAC) recently issued$112.5 million in revenue bonds to meet the demand for new educationloans.Most of the bond proceeds will be used to finance conventionalfederal education loans, primarily Stafford loans for students and PLUSloans for parents. A smaller share will be used to cover what are known asalternative or supplemental loans. Increasingly, education expenses exceedwhat students are able to cover using government grants and loans, forcingstudents to turn to more costly alternative financing. “We remainconcerned about the amounts families are having to borrow to pay forcollege, whether through the federal loan program or other sources,” saidVSAC President Don Vickers said. “As a result, we will continue toadvocate at both the federal and state levels for more grants andscholarships, which, unlike loans, do not have to be repaid.”Despite significant education debt levels in Vermont, VSAC borrowers continue tomaintain a good track record in repaying their loans. The most recentdefault rate for VSAC borrowers is 3.1 percent, one of the lowest rates inthe nation.last_img

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