VSAC negotiates deal with Key Bank; will be able to continue making student loans next year

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(Host) Vermont’s prime student lending agency announced today that it will be able to make loans for the next school year.

That was in doubt because agencies like the Vermont Student Assistance Corporation have been affected by the upheaval of the financial markets.

VSAC officials say they can no longer get money through “auction rate bond” markets.

So VSAC negotiated a deal with Key Bank of Vermont for $390 million. The agency will use that money to support loans to 70,000 people in the next school year.

 

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