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.
Changes to Federal Student Loans from the One Big Beautiful Bill Act
Enacted in July 2025, the One Big Beautiful Bill Act introduced significant changes to higher education policy and the Federal Loan programs. Changes resulting from this legislation are slated to be effective as of July 1, 2026.
Vassar is continuing to track these changes and plans to make updates to this site as more clarification from the Department of Education is released. Please note that these changes do not impact the current 2025–2026 academic year but will go into effect for the 2026–2027 academic year.
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: 6.39% (fixed) for 2025–2026
- 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
- New: Loans for academic year enrollment must be split evenly across both terms (Fall and Spring)
- 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: 8.94% (fixed) for 2025–2026
- Origination fee: 4.228%
- New: Maximum annual limits
- Per student aggregate limit of $65,000*
- Eligible parents may borrow a maximum of $20,000 per aid year
- Parents who borrow more than $16,250 per aid year may have limited remaining eligibility available for the student’s 4th year
- Legacy Provision: students who borrowed any Federal Direct Loan or parents who borrowed a Federal Parent PLUS Loan for this student before July 1, 2026 may continue applying for and borrowing these loans up to the student’s cost of attendance (minus all other aid)
- 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.