Understand Your Education Loans

How Interest Works

Education loans accrue (accumulate) interest charges on a daily basis. With daily interest, you accrue one day’s worth of interest for each day you owe a balance to the lender. The higher your principal balance is, the greater your daily interest charge will be. The lower your principal balance is, the lower your daily interest charge will be.

The Life Cycle of a Student Loan

In School

Students are not due for payment on Federal Stafford or Graduate PLUS loans while enrolled at least half time in an eligible college or university. While you are not due for payment, you can make payments at any time. Making payments while you are in school will reduce the cost of your loan over time since you’ll be reducing your principal balance and any outstanding interest.

Parents, as PLUS loan borrowers you can request a deferment (suspension of payments) while your dependent student is enrolled at least half time.

In Grace

Students, once you leave school, or are no longer enrolled at least half time, you will have six months until you have to begin making payments. For Federal Stafford loans this is called a Grace Period. For Graduate Plus loans this is called a Post Enrollment Deferment.

During this time you should be evaluating your estimated monthly loan payment and determining how to fit this payment into your monthly budget. You can also make payments during this time to help reduce the cost of your loan over time.

Parent PLUS loan borrowers do not receive a grace period; payment is due once the PLUS loan is fully disbursed. However there are many repayment options available. Log in to Manage My Account (MMA) to explore, or call VSAC Federal Loans to review your situation.

In Repayment

Prior to your first payment being due, you will receive a notice from VSAC Federal Loans outlining your repayment term and payment amount. If you haven’t already, set up Manage My Account (MMA) so you can manage your student loan account online.

Manage My Account (MMA) provides you a fast, secure, convenient way to manage all your VSAC loan needs 24 hours a day. Make payments, reduce or suspend your payments, view detailed account information, print important loan documents and more online. You can also sign up for Electronic Correspondence and receive most of your loan information electronically.

Click here to sign up for MMA today!

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