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Loans and Lenders

Loans can be an integral part of financing a college education. Because the terms and conditions can vary greatly, be sure to compare all loan programs carefully. Understanding your options is the basis for borrowing wisely.

Federal Loans for Students

Federal Direct Loans are available to eligible students who complete the Free Application for Federal Student Aid (FAFSA). There are two types. The subsidized loan does not accrue interest while the student is enrolled in school. The unsubsidized loan does accrue interest, beginning from the time the loan is disbursed. Eligibility is determined by the student’s class year, level of financial need, and amount of other aid received.

  • Interest rate: 6.533% (fixed) for 2024–2025
  • Origination fee: 1.057%
  • Maximum annual limit: 1st year: $5,500, up to $3,500 can be subsidized; 2nd year: $6,500, up to $4,500 can be subsidized; 3rd/4th year: $7,500, up to $5,500 can be subsidized
  • Repayment begins: 6 months after graduating, leaving school, or dropping below half-time enrollment
  • Repayment period: varies depending on payment plan selected

Federal Loans for Parents

Direct Parent PLUS Loans are government loans made available to parents of dependent undergraduate students. To qualify, the parent must be a U.S. citizen or eligible non-citizen, and must not have an adverse credit history. A credit check is required as part of the application. If the credit is denied, the parent can reapply with an endorser, or the student may borrow an additional unsubsidized loan for $4,000–$5,000, depending on class year.

  • Interest rate: 9.083% (fixed) for 2024–2025
  • Origination fee: 4.228%
  • Maximum annual limit: total cost of attendance (budget) less any financial aid the student receives
  • Repayment begins: once loan is fully disbursed, option to request a deferment
  • Repayment period: varies depending on plan selected

Alternative Loans

Alternative student loans are non-government loans from lenders such as banks, credit unions, and state agencies. The primary borrower can be the student, a parent, or a sponsor. When the student is the borrower, a co-signer is typically required.

Vassar College does not endorse or recommend any lenders in particular. Ultimately it is the family’s responsibility to research all options and select the one that best meets their needs. Visit ELM Select for a sampling of lenders used by Vassar students in recent years.

Please also review your state’s higher education assistance program(s) for lending options as well as possible grant and scholarship opportunities. Here are the most common organizations for which we have processed applications:

CHESLA for Connecticut

FAME for Maine

HESAA (NJCLASS) for New Jersey

PHEAA for Pennsylvania

VSAC for Vermont

Interest rates, origination fees, and repayment terms vary across lenders. The maximum annual limit is the total cost of attendance (student budget) less any financial aid the student receives.