VSAC Federal Loans

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General FAQ

Statements and My Secure Messages

What is My Secure Messages?

My Secure Messages is VSAC’s convenient and secure online message system which provides you access to your monthly statements and correspondence online. Log in to your account to access My Secure Messages.

What are the benefits of getting my correspondence online through My Secure Messages?

  • My Secure Messages electronically stores your statements and other correspondence for you.
  • As part of our password-protected, secure Web site, your confidential account information is protected from tampering or theft.
  • All of your VSAC statements and account information are available at your fingertips wherever you have Internet access, including your mobile
  • It’s good for the environment—eliminating paper statements saves trees and reduces waste.
  • Always have access to your account information in real-time.

How do I access My Secure Messages?

After you Log In to your online account, click on “Inbox (Statements/Correspondence).”

Is my information secure through My Secure Messages?

When you access My Secure Messages you can be sure that your information is protected by industry standard safeguards. Logging in to your VSAC online account, you’ll use a username and password only you know. Additionally, VSAC’s Web site is equipped with VeriSign (SSL encryption) to protect your information and online transactions.

How will I know when I have a new message in My Secure Messages?

VSAC will send you an e-mail when you have a new message. Please be sure your e-mail address on file is accurate. The e-mail will include a link to the account login page.

What if I don’t get my e-mail reminder telling me I have a new statement or correspondence to view in My Secure Messages?

You remain responsible for ensuring your loan payments are received on-time even if you are not receiving e-mail reminders. Messages will still be delivered to your My Secure Messages inbox. It is important that you have a valid e-mail address on file at all times to ensure you receive these notifications. Each time you log into your account you will be prompted to update your contact information including your e-mail. We also encourage you to add Fedinfo@vsac.org to your e-mail Contacts list to prevent your provider from identifying them as junk mail.

When are online statements available for viewing?

Statements are available online about three weeks prior to your payment due date.

I am a co-maker/endorser on a borrower’s account. Will I be able to access correspondence through My Secure Messages?

Statements and correspondence are only provided through My Secure Messages to student loan borrowers. Co-makers and endorsers will receive their correspondence from VSAC via mail

How long will statements and correspondence be stored in My Secure Messages?

Statements and other correspondence will be stored in your My Secure Messages inbox for 12 months, after which time they are deleted. To retain your statements and messages prior to the end of the 12-month time frame, you may save them to your computer, a CD, or a flash drive.

Can I view my previous statements and correspondence online?

Your previous VSAC correspondence is not stored online prior to registering for your online account.

Can I retrieve a message once it has been deleted from My Secure Messages?

Once you delete an e-mail from your My Secure Messages inbox, it cannot be restored.

How can my parent(s) or a third party make payments on my account if a statement isn’t mailed?

Your parent(s) or a third party can quickly and easily make a payment on your account through VSAC’s free, online payment system. You will need to set the person(s) up as an authorized payer online. An authorized payer can make payments on your account, but they do not have access to your account information or messages. Follow these easy steps to set your parent(s) or a third party up as an authorized payer:

  1. Log in to your account, and then click “My Info and Preferences.”
  2. Select the “Payment Profile” tab.
  3. Click “Add Authorized Payer” button.

If the authorized payer does not have internet access, you can print paper copy of your statement from your “My Secure Messages” inbox.

Can I choose to get my statements and correspondence in the mail instead of through My Secure Messages?

My Secure Messages provides you access to your VSAC statements and correspondence in one convenient, free, and secure online message center. No matter where you are or if your mailing address changes, your VSAC student loan account information is quickly available at a single, secure location. If you need your VSAC statements and correspondence mailed, please call a VSAC counselor to discuss your options.

Will I receive a monthly statement?

Yes, VSAC generates monthly billing statements. If you have signed up for paperless billing, you can access your statement in your My Secure Messages inbox approximately 3 weeks before your due date.
Note: If your loans are in an in-school, grace, deferment, forbearance or KwikPay status, you may not receive a monthly account statement. You can log in to your account for specific loan information.

Can I mail payments without a statement stub?

When mailing payments, you must include the bottom portion of your monthly statement with your check. Your most recent statement can be printed from your My Secure Messages.

When are online statements available for viewing?

If you have elected to Go Green, your statement will be available online about three weeks prior to your payment due date.

What if I don’t receive an e-mail notification for my statement?

It is still your responsibility to pay the amount due by your due date. If you don’t receive an e-mail notification, please update and/or verify the e-mail address we have on file by logging in to your account and clicking “My Info and Preferences.”

How can I get a printed copy of my billing statement?

You can print your billing statement online by logging in to your account and clicking on “My Account.” When the statement is displayed on your browser window, select the “Print Page” button.

Can I view my statement information online?

Yes. You may view your statement by clicking “Inbox (Statements/Correspondence).”

Manage My Account

Unable to register my online account

You may be unable to register your Manage My Account online account access for a short period of time. If you need immediate assistance please see the contact us page or check back in 10 business days for your online account access.

How do I access my online account?

Go to www.vsacfederalloans.org and click on Log In under Manage My Account. If you have already registered, please enter your username and password.  Use the ‘forgot username or password’ links if needed.

If you have not yet registered:

  1. Click the register link for New User.
  2. To create your account, enter your:
    • Last name
    • First name
    • Social Security Number (SSN)
    • Date of birth
    • E-mail address
  3. Create your unique user name. You will use it to log in to your online account going forward. Note: Please save your user name for your records.
    • Your user name may be any combination of 6 to 20 letters and numbers.
    • It can’t contain special characters (‘?&%$#@+!~, etc.).
    • It must begin with a letter.
  4. Create your personal password and then re-enter it in the field below to verify. Note: Please save your password for your records. Your password won’t be available for you to view through your account after you create it.
    • Your password may be any combination of 8 to 16 characters.
    • It must contain 3 of the following:
      • At least 1 uppercase letter
      • At least 1 lowercase letter
      • At least 1 number
      • At least 1 of the following special characters (!,@,#,$,&,*)
      • It can’t contain your user name.
      • It can’t contain “VSAC” or “Password”
    • Click “Save & Continue” in the lower-left corner when you are finished.
    • On the next page, you will be asked to select and answer three of the 10 displayed security questions. The answers you enter are not case-sensitive, and you may use alpha, numeric, spaces, and special characters.
    • Next, select one (1) image from the six (6) displayed images to allow VSAC to identify you and/or your personal computer during future logins and for you to be confident that you are logging in to a legitimate VSAC site.
    • Finally, select whether the computer you are on is a public computer that should NOT be added as a trusted computer or a private computer that you may choose to add as a trusted computer.
    • Click “Save & Continue” in the lower-left corner when you are finished.

I don’t currently have an e-mail address. What do I do now?

Many e-mail account providers allow you to create a personal and secure e-mail account for free. Some examples of popular e-mail account providers include AOL, Gmail, Hotmail, and Yahoo!

What if I change my e-mail address—how will I change it with you so I still get e-mail reminders?

Each time you log in to your account, you will be asked to verify and update your contact information including your e-mail address. Because our site is updated hourly, if you update your contact information, you must wait at least one hour before making additional changes or updates to your information again.

How do I update my contact information?

Each time you log in to your account, you will be prompted to verify and update your contact information. Any changes to your contact information will be updated in our system within an hour. If you have recently changed your contact information and need to make additional changes, please wait at least one hour before updating your contact information again.

What if I have forgotten my user name?

  1. Click the link ‘Forgot Username’ on the Log In page.
  2. Enter you Social Security Number
  3. Enter your date of birth
  4. Click “Request Username”

What if I have forgotten my password?

  1. Click “Forgot password” on the Log In page.
  2. Enter your Social Security Number and date of birth. Click “continue” at the bottom of the page.
  3. Option 1 allows you to request a temporary password be sent to your e-mail.
  4. Option 2 allows you to answer one of your security questions and reset your password within MMA.

I requested my password be e-mailed to me; I have not received it yet.

Sometimes automated replies are auto-directed to a junk or spam folder within your inbox. Please be sure to check all of your e-mail folders.

IMPORTANT: If you have a Yahoo e-mail account, please add fedinfo@vsac.org as a trusted contact.

Is my password case sensitive?

Yes. Your password may be any combination of 8 to 18 characters.
It must contain 3 out of the following:

  • At least 1 Uppercase Letter
  • At least 1 Lowercase Letter
  • At least 1 Number
  • At least 1 of the following special characters (!,@,#,$,&,*)
  • It can’t contain your user name
  • It can’t contain ‘vsac’ or ‘Password’

Is my user name case sensitive?

No. Your user name may be any combination of 6 to 20 alpha-numeric characters.

  • It must begin with a letter
  • It can’t contain special characters(!,@,#,$,&,*, etc.)

How do “cookies” work?

Cookies are text files on your computer that allows Web sites to store information on your computer and later retrieve it. When a computer is registered as “Private”, the registration is being stored in the “cookies”.

Why should I enable my cookies while on this site?

Enabling your cookies allows you to use the functionality of the “Back” button on the VSAC Web site.

How do I enable my cookies?

NOTE: Browser versions vary, so these instructions may not be the exact steps you need to take for your personal setup.

 

Firefox

  1. Open your Internet browser.
  2. Select “Tools” from the menu bar.
  3. Select “Options.”
  4. Click on the “Privacy” icon.
  5. Under the “Cookie”section, ensure that both boxes for accepting cookies are selected.
  6. Click “OK.”

Internet Explorer

  1. Open your Internet browser.
  2. Select “Tools” from the menu bar.
  3. Select “Internet Options.”
  4. Click on the “Privacy” tab.
  5. Ensure that the settings are set to medium-high or lower.
  6. Click “OK.”

How do “cookies” work?

Cookies are text files on your computer that allows Web sites to store information on your computer and later retrieve it.

Why am I required to complete a security setup process?

VSAC values your privacy. In an effort to retain the security of your information online, VSAC provides an additional layer of protection. By answering security questions and selecting an image you can be confident you’re logging into a legitimate VSAC site. You may also designate your personal computer as a trusted computer.

When will I be required to complete the security setup?

All VSAC customers who log in to their account for the first time will be asked to complete the security setup process.

How do I complete the security setup, and how long will it take?

Completing the security setup process is easy and only takes a few minutes. After you enter your username and password, you will be prompted to begin the security setup. You’ll select and answer three (3) security questions. You will then choose a security image that will display on your screen when logging in. Selecting an image completes the security setup process.

Once I have completed the security setup, will I still need to log in to my account using my user name and password in the future?

Yes. Each time you log in to your account you will enter your username and password.

What is the purpose of entering pre-defined answers to security questions?

This allows VSAC to confirm your identity before allowing you to reset your password in MMA.

How many security questions may I select and answer during the security setup?

You will be asked to select three of the 10 displayed questions and provide answers to help VSAC verify your identity during your future sessions in your online account.

When will I be asked to answer one of my security questions?

You will be asked to answer a security question if you choose to reset your password within MMA.  You may also request to have a temporary password e-mailed.

What if I incorrectly answer or have forgotten the answer to my pre-defined security questions?

If you fail to answer your question correctly, you will have two (2) more opportunities to answer that question. After three (3) unsuccessful attempts at answering that question, you will be prompted to answer a second question. Again, you will be allowed three (3) attempts to answer the second question.
If you are having difficulty remembering the answers to your security questions, OR, are locked out because of six (6) total unsuccessful attempts please call VSAC at 888-932-5626.

Why do I have to answer security questions?

We use the security questions as an extra layer of protection, helping to prevent unauthorized people from accessing your accounts.

How can I change my security questions?

To change your security questions, first log into your account, and then perform the following steps:

    • Click “My Info and Preferences” on the home page of your account.

You have the following options:

    • change password
    • security question
    • Select an image

Select the option you wish to change

During the security setup, I am asked to “Select an image.” Why do I need to complete this step?

This image will be displayed during the login process to verify that you are logging in to a legitimate VSAC Web site.

When will I see my security image?

You will see the image you selected every time you log in to your account so you can be confident you are logging in to a legitimate VSAC Web site.

During the login process, what if the image I pre-selected does not appear?

If you do not recognize the image or one is not displayed, do NOT enter your password. End the session by closing your window; then go to www.VSACfederalloans.org through another browser window and attempt to log in again.

Can I change the answers to my pre-defined security questions and pre-selected image at a later time?

Yes. Log in to your account, click “My Info and Preferences” from the main menu. Click the “Password/Security” tab. From here you can change your password, security questions, and/or image.

I have locked myself out of my account, how can I re-set it?

To unlock your account, perform the following steps:

  • Click “Forgot Password” link located on the log in page, below the Password box.
  • Validate your identify by entering the following information:
    • Your Social Security Number
    • Date of Birth (mm/dd/yyyy)
    • E-mail address
    • Click “Request Password”
    • Answer the security question

If all the information matches what is on file for your account, your password will be reset, and you will be asked to enter a new password. You will receive an e-mail informing you that your password was recently changed.

What browsers are your account compatible with?

This website is compatible with the following browsers:

  • Google Chrome
  • Internet Explorer 7-10
  • Mozilla Firefox
  • Safari

What does it mean when the system says it can’t validate my information when I have forgotten my User Name?

The user name/password combination is not valid.

We recommend you click on “Forgot User Name” to ensure you are entering in the correct User Name

Make sure you are entering your date of birth as mm/dd/yyyy.

When providing your SSN, please only provide the last four digits.

Why do I have an image?

The image is another layer of security VSAC has in place on your online account, which you choose. When the image appears, you can ensure the Web site is secure to continue with your login process. If you do not recognize the picture presented, do NOT enter your password. Please close the session and log in again by going to www.vsacfederalloans.org.

Why do I continue to receive a Runtime error message when I login?

This can be caused by browser compatibility issue. Your account is compatible with the following browsers:

  • Google Chrome
  • Internet Explorer 7-10
  • Mozilla Firefox
  • Safari

Payments

Can I make a payment online?

Yes. Log in to your account and click on “Pay Now.”

How can I make a payment?

VSAC accepts payments from many convenient payment methods. You can pay by:

  • Recurring automated debit (KwikPay®)
  • KwikPay automatically deducts your monthly student loan payment from a checking or savings account. Payments are posted on your due date or the next business day in the event of a holiday or weekend. To sign up for KwikPay, log in to your account and select “Manage KwikPay (auto-debit).”
  • Web (MMA)To make a one-time electronic payment via checking or savings or schedule future dated payments, log in to your account and select ‘Pay Now’.
    Payments made before 4:00 p.m. (EST) on business days will post the same day. Payments made after 4:00 p.m. (EST) or on weekends and holidays will post the next business day.
  • PhoneMake a one-time payment from your checking or savings account via VSAC’s telephone self-service system at 888-932-5626. There is no fee for this service and it is available 24/7.
    Payments made before 4:00 p.m. (EST) on business days will post the same day. Payments made after 4:00 p.m. (EST), or on weekends and holidays, will post the next business day.
  • Online bankingPayments made through your online banking system will be routed to VSAC for electronic posting. You must provide the correct account number, payee information, and payment address to ensure your payment(s) is successful. Please use the following information when using your online payment system:
    Payee: Department of Education
    Account Number: Your nine-digit account number as shown on your statement (do not use the D, J, or E at the beginning of the number)
    Payment Address:

    Department of Education

    P.O. Box 530815

    Atlanta, GA 30353-0815

    Payments made in this manner are generally applied to your account within three (3) days of the date you make the payment. If you do not provide the correct information with your payment,  a check will be mailed  to VSAC for processing. It can take 7 to 10 days for this check to be posted from the date you make your payment.

  • Mail
    Make a payment via a check, money order, cashier check or bank check. Please submit your payment along with the payment coupon located at the bottom of your statement to:

    Department of Education

    P.O. Box 530815

    Atlanta, GA 30353-0815

    Remember to write your account number on your check, always include the coupon portion and clearly check the box on the front of the coupon if you have a change of address or require special instruction processing. Payments will be posted within five (5) days of receipt. Click here for more information regarding special instruction payments.
    Important- Do not send cash, as it will be returned to you and your payment will not be applied.

How can I make a one-time payment?

Simply log into your account and click “Pay Now” from the menu on the left.

How do I schedule recurring payments?

You may apply for KwikPay by logging in to your account and clicking on “Manage KwikPay (auto-debit).”

What is the difference between KwikPay® and Pay Now?

KwikPay automatically deducts your monthly payment when your payment is due. You only have to sign up one time to have all of your payments made automatically. Pay Now allows you to make a one-time payment.

What are payment profiles?

Payment profiles store your name, contact information and bank information. Payment profiles allow you to securely save your payment information for future payments.

If I am in grace, deferment, forbearance or in-school status, do I need to make a payment?

No, you are not required to make payments. You may choose to make payments on your loan(s) at any time with no penalty to reduce your balance and total cost of your loan(s).

Can I change my monthly payment date?

Yes. If your account is current, you can contact us to request a change to your payment due date.

When will my payments be posted to my account?

It takes approximately two (2) business days to process an online payment.

What happens if I pay more than the payment amount?

If you send in a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest is paid.

How long will it take from the time I make an online payment until my bank account is debited?

It takes approximately two (2) business days to debit your bank account.

How can I view the payments I have made in the past (payment history)?

Log in to your account and click on “My Payments” to view your payment history.

How can I view or cancel currently scheduled payments?

By clicking “My Payments” from the MMA menu on the left, you can view or cancel your currently scheduled payments. Payments must be cancelled before 4:00 p.m. (Eastern) on the date they are scheduled to be made.

What is KwikPay® and how do I sign up?

KwikPay automatically deducts your monthly student loan payment from a checking or savings account. Payments are posted on your due date or the next business day in the event of a holiday or weekend. To apply for KwikPay, log in to your account and select “Manage KwikPay (auto-debit).”

When will the first payment be debited on KwikPay®?

KwikPay must be set up at least 3 days in advance of your next due date to ensure a debit will occur for that installment.  If you sign up for KwikPay less than 3 days in advance of your next due date your first installment may not debit until the following month and you may need to make the current installment manually.

Can I request KwikPay® if my account is past due?

Yes. In most situations an interest-capitalizing hardship forbearance will be placed on your account to bring it current prior to the first debit occurring.
You will receive notification if your account has been set up for KwikPay or if your account did not qualify for KwikPay.

Can I request KwikPay if my loan is paid ahead?

Yes. KwikPay automatically debits your account monthly even when your loan is paid ahead unless you are in a deferment/forbearance, or paying your account under one of the income-driven repayment plans (IBR,ICR or PAYE).

Can I request KwikPay if my loan is in a deferment/forbearance?

Yes. You may request KwikPay but your first debit will not occur until your loan(s) covert to repayment at the end of the deferment/forbearance.  If you wish to make payments while in deferment/forbearance you may do so using the PayNow option.

Can I request KwikPay® if my account is in grace status or in-school status?

Yes. However, your first debit will not occur until a regular payment amount is set for your account. This occurs typically six (6) months after graduation or separation from school.

Can I request that KwikPay® debit an amount that is greater than my normal monthly installment amount?

Yes. The application you complete will prompt you to select this option and to provide the amount you wish to pay each month.

How do I cancel or make changes to my existing KwikPay® setup?

You can cancel or make changes to KwikPay at any time. The fastest way to cancel or make changes (change bank account number, alternative payment amount or override option) to KwikPay is to log in to your account and submit your request electronically. You may also fax, mail or request the change via telephone.

Fax: 1.802.654.3777
Mail:
VSAC Federal Loans
P.O. Box 777
Winooski, VT 05404-0777
Phone: 888-932-5626

The cancel and/or change date depends on your current monthly due date and the date you are canceling or changing KwikPay. If your current due date is within 10 days of the date you are canceling or changing KwikPay, the change will not occur until the following month. If your current due date is greater than 10 days from the date you are canceling or changing KwikPay, the change will be effective on your current due date. You will receive information when signing up electronically and/or a confirmation letter that indicates the date of the cancellation and/or change. You are responsible for ensuring your payments are received on-time.

What are the advantages of KwikPay®?

KwikPay is convenient, safe and secure. This simple payment option saves you time and money and offers you the peace of mind that comes with knowing your student loan payments are being made in an accurate and reliable manner each month.
There are no service fees for using KwikPay. In addition, you don’t need to use stamps or a check, which saves you time and money and preserves our natural resources.

Will you mail me a statement while on KwikPay®?

No. You can view and print your statement online by logging in to your account and clicking on “My Secure Messages.”

Can I have KwikPay® payments debited from a spouse’s or parent’s bank account?

Yes. Your name and VSAC account number must be on the authorization form. The person who is making the payments must sign the form and provide all of the necessary banking information.

What happens if my KwikPay® scheduled payment falls on Saturday, Sunday or a holiday?

The payment will be deducted the next business day.

What if I don’t have enough money in my bank account on the day you debit my KwikPay® payment?

Two occurrences of insufficient funds within 12 months may result in the termination of your KwikPay agreement and/or loss of an interest reduction incentive.

You must make six (6) on-time payments in order to sign up again.

How will my KwikPay® payment be applied?

Per regulations, all payments are applied to interest, then principal. If you send in a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest is paid.

Can I designate how to apply my KwikPay® payment to my loans?

No. Payments are distributed across all of your active loans in repayment.

What if I am making my final loan payment on KwikPay®?

KwikPay is able to debit a final payment even if the amount is less than the regular monthly amount. It will automatically calculate and debit the last and final payment.

What is a special instruction payment?

Special instruction payments should be made when:

  • You would like your payment applied in a specific way other than it would normally be applied.*
  • You would like to adjust your due date to remove the paid-ahead status.*
  • You would like to pay off any or all loan groups.

*Special instructions must be included with every payment you want applied in a specific way. We are unable to apply special instructions once a payment has posted.

A request to have the payment applied only to your loan(s) and/or group(s) with active balances remaining does not require a special instruction.

How do I request a special instruction payment?

Please mail your payment, account number and/or payment coupon and special instruction request to the following address:

Department of Education

P.O. Box 530815

Atlanta, GA 30353-0815

What do I need to do if I have auto-debit payments through KwikPay® and want to ensure you don’t advance my due date?

If you are signed up for KwikPay with the override option, your monthly payment will debit every month even if the due date is paid ahead. No special request is needed because your payment will automatically debit from your bank account every month.

If one or more of my loans is past due, can I still make a special instruction payment?

We are unable to honor special payment instructions if the account is past due. The payment must be applied across all delinquent loans to bring all as current as possible.

What happens if I tell you to apply my payment to a specific group but it has a zero balance or that group does not exist?

The payment will be applied to any remaining loans with active balances.

Why is my current principal balance different from my 10-day payoff figure?

The 10-day payoff figure includes all accrued interest currently due on the loan plus 10 days of future interest (to allow for mailing time). If the payoff is not received within 10 days, you may need to send an additional payment.

How do I find the amount needed to pay my loans in full?

Online:
When you log in to your account, you will find your payoff amount on the “View My Account Summary” page. You will be able to view the current payoff amount and the amount for 10 days in the future.

Phone:
Payoff information can be obtained 24 hours a day, 7 days a week by calling VSAC’s telephone self service at 888-932-5626.

Monthly statement:
Your payoff amount is shown on the “Total Payoff” line of your monthly statement. The payoff amount is good through the date shown on the “Payment Due Date” line.

What if the amount I pay is not quite enough to pay my loans in full?

If the payment you provide is not enough to pay your loans in full, the payment will be applied to your loans as normal and you will continue to receive statements from VSAC until the loans are paid in full.

How will I know that you have received and processed my “payoff” payment?

We will mail you a letter confirming the payoff approximately 60 days after receipt of the final payment. You can also view this confirmation by logging in to your account and clicking on “My Secure Messages.”

What if I pay only enough to pay my principal balance in full but not enough to cover interest?

If your payment does not satisfy the total balance (including principal and interest) the payment will be applied to your loans as normal and VSAC will continue to bill you monthly for the remaining balance.

What if I don’t receive my statement reminder and I miss a payment? Will there be a late fee?

VSAC does not currently charge late fees. Late payments may negatively affect your credit. You remain responsible for ensuring your loan payments are received on-time even if you are not receiving e-mail reminders. For guidance on how to ensure you receive your messages, please log into your account and click on the “Message Settings.” tab accessible through the “My Info and Preferences” link.

Disclosure of Repayment Schedule

What is a Disclosure of Repayment Schedule?

A repayment disclosure is a notification of the actual cost and terms of a loan, which includes specific details about your loan (such as your interest rate, finance charges, estimated monthly payment amount, etc.) and repayment schedule.  Disclosures are generated shortly before your loan repayment obligation begins and as needed throughout your repayment term.

 

The disclosure may be mailed to you or may be presented online if you signed up for e-correspondence and receive your student loan correspondence online.

When is my first (“initial”) disclosure generated?

The type of loan you have will determine when you receive the initial repayment disclosure:

  • Direct Subsidized or Unsubsidized Stafford loan – an initial repayment disclosure is sent 90 days before the loan enters repayment status (after the grace period ends).
  • Parent and Graduate PLUS loans – At the time of final disbursement
  • Consolidation loan –  At the time of final disbursement

 

When would I receive subsequent Disclosure of Repayment Schedules?

Disclosures are sent anytime there is a change to the monthly payment (either an increase or a decrease in payment) to ensure the loan will pay out in the remaining available term.  The new payment will not go into effect until 30 days after the disclosure has generated.

You may receive subsequent Disclosure of Repayment Schedules when:

  • You have a variable interest rate and the interest rate has recently changed.  A variable interest rate can change every July 1st.  The interest rate can go up or down but cannot exceed the maximum interest rate set by Congress.
  • You have unpaid interest added to your principal balance.  This usually occurs following a repayment option to postpone or reduce your payments.
  • You change your repayment plan (e.g. you change from a standard repayment plan to an income-based repayment plan, etc.).

 

The disclosure shows my payment changed.  How is my payment amount determined?

Your payment amount is determined by your payoff balance, interest rate and length of time allowed to repay your loan (loan term).  Your loan balance is impacted by the frequency of your payments, variable interest rate changes, and the amount of time you have already been in repayment.  As a result of these factors your payment amount may need to increase or decrease to ensure your entire loan is paid in full within the time allowed.

I have a fixed interest rate. Why does the disclosure show my payment increased?

Payments are adjusted to ensure your loan is paid in full within the time allowed (loan term).  When payments are not made every 30 days or payments are reduced or postponed your loan may not be paid in full in the time allowed.  When this occurs, your payment amount may need to be increased to ensure your loan is paid in full within the time allowed.

I am enrolled in the KwikPay auto-debit program. How does that get updated?

The KwikPay debits are automatically updated to the new payment amount reflected on your monthly statement.

I can’t afford my new payment amount. What do I do?

The new payment will not go into effect until 30 days after the disclosure has generated.

There are various repayment options available to assist you if you need to temporarily reduce your monthly payment. You can get more information (and estimates) by logging into “Manage My Account” and click on “Lower My Payments”.

If you’re enrolled in KwikPay auto-debit program and do not want the new payment amount to be debited, click on the “Manage KwikPay (auto-debit)” button to cancel KwikPay.  Cancellation must be in effect a minimum of 6 calendar days before the debit will occur.  If you cancel enrollment in KwikPay, you will no longer receive the .25% interest rate reduction.

Loan Servicing Information

Is there a difference between the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan (Direct Loan) Program?

Yes, some differences include repayment plans, borrower benefits, loan forgiveness programs, and interest rates. The federal government funds the Direct Loan Program and private lending institutions fund the FFELP.

How can I determine my loan program(s)?

Log in to your account, click on the “View Loan Balance Details” in the Account Snapshot box. Click “+” next to each loan group to view the expanded details. The loan type is listed under the Loan Overview heading.

Does VSAC own my student loan(s)?

No. The Department of Education owns your loans. VSAC services loans for the Department of Education.

How do I authorize VSAC to release information about my account to a third party?

Complete and return the Release of Authorization form to VSAC.

Why do I have two (or more) account numbers?

Account numbers are assigned when a loan is added into our servicing system. An account number is assigned to each of your loans to protect your identity when correspondence is sent to you regarding your loan(s).
You may have multiple account numbers to ensure that you have the ability to conveniently gather information regarding your loans. Your account number will be displayed on all correspondence and will also be securely displayed to you when you access your account online.

How is student loan interest calculated?

All federally guaranteed loans use a method of interest accrual known as “simple interest.” Interest accrues daily based on your current interest rate and principal balance.

Use the following formula to calculate your daily interest accrual: (Current Principal Balance x Interest Rate) ÷ 365.25

What does it mean when interest is capitalized? When does it occur?

When unpaid interest capitalizes, it is added to the principal balance of the loan(s) which increases the total cost of your loan. Interest capitalizes when a loan enters repayment and after periods of deferment or forbearance.

Does interest continue to accrue even when I’m paid ahead?

Yes. Interest continues to accrue every day.

When am I considered past due on my loan?

You are considered past due the day after your payment was due.

Why do I continue to receive phone calls and letters from VSAC when I have made payment or deferment arrangements?

Federal regulations require us to continue to contact you by phone and through mail until your account is current. Attempts to reach you continue until payment(s) satisfying the full amount past due are received or a repayment option bringing your account current is approved.

Why do I receive phone calls from VSAC, my school and/or a guaranty agency?

When your account is past due or we have an incorrect address or phone number for you, we are required to reach you to resolve the delinquency or obtain new contact information. Your guarantor and school are also notified of the delinquency and may try to reach you by telephone or mail. You can update your address and phone information by logging in to your account and clicking on “My Info and Preferences.”

Why did you contact my father, mother, relative or an acquaintance about my loan?

Your loan application requested several personal references. When we do not have a valid telephone number or mailing address, we will contact your references to obtain correct information. Unless you have provided permission, we do not release information regarding your account with your references. Your references will not be contacted if we have your current telephone number and mailing address. You can conveniently update your address and phone information by logging in to your account and clicking on “My Info and Preferences.”

How often do you report my loan information to the credit bureaus?

VSAC reports credit information to the four national credit bureaus (Innovis, Experian, Transunion and Equifax) monthly.

I am applying for a mortgage and need an account summary letter. How can I request a letter to be sent to the company?

You can download a credit reference online by logging in to your account and selecting “Print Loan Summary Letter.”

Can I deduct the student loan interest I paid on my income tax return?

You may be able to deduct the student loan interest you paid in the previous year on your income tax return. For more information regarding what is deductible, contact your tax advisor or see IRS Publication 970 “Tax Benefits for Education” and “Student Loan Interest Deduction Worksheet” in your Form 1040 or 1040A instructions.

How does VSAC provide my tax information?

In most cases, you will receive IRS Form 1098-E tax information on your January billing statement. If you do not normally receive monthly statements because your account is in deferment, forbearance, grace or in-school status or your payments are auto-debited via KwikPay®, you will receive a paper statement in January to ensure you receive your IRS Form 1098-E tax information. If you have enrolled to receive electronic correspondence, the 1098-E tax information will be available on your electronic statement. This information can also be found by logging in to your account.
If your account was paid in full on or before December 31 of the previous year, you will receive a separate IRS Form 1098-E.

Why is my Social Security Number provided on the IRS Form 1098-E?

Federal regulations require that we provide your Social Security Number on the IRS Form 1098-E. Your Social Security Number will be removed from your monthly statement once the tax information is no longer displayed.

What if I need another copy of my IRS Form 1098-E?

This form is an informational form and does not need to be filed with your tax return. If you want a paper copy of your tax information, it will appear on your monthly account statements starting in January and will be present through March. If you do not receive normal monthly statements or if you paid off your loan(s) in the prior year, you may access this information online by logging in to your account.

What is a grace period?

A grace period is a period of time after your enrollment ends or you drop below half-time enrollment before you must begin repayment on your loans.

Are my Loans eligible for a grace period?

Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Stafford Loans and Unsubsidized Stafford loans have a 6 month grace period prior to repayment.  Plus loans have no grace period and enter repayment once they are fully disbursed.

Repayment Options

What is a deferment and how do I apply?

A deferment is a temporary suspension of payments. You must apply and meet specific eligibility requirements to defer your payments. To apply for a deferment, log in to your account and click on ‘Postpone My Payments’.

What is forbearance and how do I apply?

Forbearance is a temporary suspension or reduction of payment. If you are experiencing temporary financial difficulty, your lender may grant forbearance of principal, interest or both, at their discretion. To apply for Forbearance, log in to your account and click on “Postpone My Payments.”

Do deferments and forbearance affect my repayment term?

Periods of deferment and forbearance do not decrease the repayment term (length of time available to repay the loan). However, using deferments and forbearances may increase the total amount to be repaid due to interest capitalization (added to the principal) at the end of the repayment option. This could result in an increase of your monthly installment to ensure your loan pays off in the term remaining.  You may make payments during a deferment or forbearance to minimize or avoid this.

How long does it take for a deferment or forbearance to be processed?

Once a complete application is received, it takes approximately; 5-7 business days for a deferment or forbearance to be processed. You can apply online by logging in to your account and clicking on “Postpone My Payments.”

What happens after I submit my deferment or forbearance form?

VSAC will review your request within 5-7 days of receipt. You will be notified when your deferment or forbearance has been processed or if we need additional information. You remain due for payments until you’ve been notified your deferment/forbearance has been granted. You may also log into your account to view the status of your account.

How long will my deferment or forbearance last?

The length of your deferment or forbearance will depend on your situation, the type of deferment or forbearance, and the attributes of your loan.

How do I renew my deferment or forbearance?

You must reapply to request another period of deferment or forbearance.  Log in to your account and click on “Need Help with Payments” to review repayment options that may be available to you.

What if I can’t afford to pay my minimum monthly payment?

Repayment options are available to make managing your monthly payment a little easier. If you encounter financial hardship, log in to your account and click on the links located beneath “Repayment Options” to view the options that may be available.

What are repayment options?

Repayment options can help make managing your monthly payment easier. Options include adjusting the term of your loan, temporarily suspending or reducing your payment, or recalculating your payment based on your income. To learn more about these options, log in to your account and click on the links located beneath ‘Repayment Options’.

How do I know which repayment option I am eligible for?

Log in to your account and click on the links located  beneath “Repayment Options” to determine the repayment option(s) you may qualify for.

How do I know if my request for a repayment option was approved?

If you are approved, we will send you a new repayment disclosure that shows your new repayment plan and payment amount.

If I request a repayment option, will the total amount I have to repay stay the same?

No. The use of repayment options can adjust the total amount to be repaid. For example, during a deferment or forbearance your account may continue to accumulate interest.  Any unpaid interest is then capitalized (added) to the principal balance at the end of this repayment option.  Or, if you choose to extend the repayment term of your loan, you will accumulate more interest over this longer term.

Will switching repayment plans or using a deferment or forbearance hurt my credit history?

No. The type of repayment plan used to repay a student loan is not reported to the credit bureaus. Using a deferment or forbearance for your student loans will not adversely affect your credit history. Making a late payment or not making a payment at all could negatively impact your credit history.

Consolidation

What is consolidation?

Loan consolidation is a federal program through the U.S. Department of Education Direct Loan program that allows borrowers to combine all of their eligible federal education debt into one new loan with one monthly payment.

How can I consolidate my student loans?

You can complete the federal consolidation application/promissory note through the U.S. Department of Education’s Direct Loan consolidation program Web site at: www.StudentLoans.gov.

Is there a fee to consolidate?

There is no fee to consolidate with the U.S. Department of Education’s Federal Direct Consolidation Loan Program.  Before consolidating, please visit the U.S. Department of Education’s consolidation website for more information, www.StudentLoans.gov. For general information on consolidation hover over the ‘Repayment Options’ link in the blue bar at the top of your screen, and then click on ‘Loan Consolidation’.

 





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