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What’s New at the
Vermont Student Assistance Corporation (VSAC)
By Cybèle Elaine Werts
CybeleW@aol.com
Originally published in the Champlain
Business Journal, Burlington VT
Changes in society and the economy have made
it necessary for many school counselors to focus on crisis
intervention and family issues, a challenge that has left little
time to address the career development needs and advice that
students need to plan for college. The Vermont Student
Assistance Corporation (VSAC) was established by the Vermont
Legislature in 1965 as a nonprofit corporation whose mission is
to make sure Vermonters get the information and advice needed to
make education or career plans as well as the financial aid
needed to pursue further education or training. In addition to
student and parent loans, they offer need-based grants, and
public and private scholarships. Thanks to VSAC’s Talent
Search and NEISP programs, students meet with their VSAC
counselors every three to five weeks, far more often than the
usual once or twice a year visit to school counselors that is
the norm. They serve most of the local Vermont colleges
including the Vermont Law School, St. Michael’s, NECI, and
Community College of Vermont.
"Many of our students have not had
experience with credit before and need advice," says Irene
Racz, director of public affairs. "We often recommend that
they not borrow more than they need, it’s so easy to overspend
and find yourself in debt." One of their current projects
is a series of seminars on managing personal finances that they
developed in conjunction with the Community College of Vermont.
Some of the topics included are managing cash, budgeting for
long and short-term needs, borrowing responsibly, and planning
for major purchases. The seminars were offered in February and
March in six communities around the state including Bennington,
Burlington, Middlebury, Morrisville, Newport, and Rutland.
Another project is the new Information Center that will be
opening in Rutland, a result of the combined efforts of VSAC and
the state Department of Employment and Training. A pilot
project, the center is meant to be a highly visible and
regionally accessible source of information and counseling about
career and post secondary education and financial aid
information. A VSAC counselor will be available in the Rutland
office, but appointments can also be made through the Winooski
office at Champlain Mill or directly. The office will also have
available a small library with college catalogues, books,
pamphlets and a computer with career and education software.
VSAC has grown from a very small organization
employing a handful of people to a relatively large corporation
employing a staff of 285. "Most of our employees work at
the Champlain Mill site," says Racz. "But we do have
outreach counselors that work out of some other offices as well
as their homes. This means they can make contact with our
clients with less traveling." VSAC President Don Vickers is
one of VSAC’s strongest outreach tools, particularly since he
has recently been appointed to the Advisory Committee on Student
Financial Assistance, which is an independent source of
information for Congress on financial aid policy. "This is
a wonderful opportunity for Vermont to have an impact on the
implementation of the recently passed Higher Education
Act," Vickers said. The appointment was made by Senate
Majority Leader Trent Lott, R-Mass, and announced by Vermont
Sen. James Jeffords, who chairs the committee that oversees
education issues in the Senate. Another way VSAC reachs out to
the community is through their web site (http://www.vsac.org)
which has been recently redesigned and expanded to offer more
planning and financial aid information. Visitors can navigate
the site by topic, or they can choose a "profile" and
be guided through the site. Enhancements to the site include a
news library that contains articles from past newsletters which
are linked to specific topics of interest.
Originally known as the Talent Search program,
the Outreach program was created in 1969 to help disadvantaged
young people pursue education or training beyond high school.
Funded by the Higher Education Act of 1965 as part of President
Johnson’s "War on Poverty," Talent Search was part
of a trio of programs that included Upward Bound and Student
Support Services. Both the Outreach Program and the federal TRIO
programs have expanded over the years to offer a range of
services to students of all ages. The program serves any
Vermonter who would like information about career planning,
education and training beyond high school, and the financial aid
process, including early college planning. In addition, with the
support of federal grants, Outreach offers intensive assistance
to middle school students, high school students, and adults who
meet income and other criteria. Outreach strives to complement
or supplement — not duplicate — the information and
counseling services students receive from their schools.
VSAC and the Department of Employment &
Training are also working to enhance the availability of staff,
services and materials , and have applied for a federal grant
through the new GEAR-UP (Gaining Early Awareness and Readiness
for Undergraduate Placement) program, which replaces a program
called NEISP (National Early Intervention Scholarship &
Partnership program) which was created by federal legislation
sponsored by Vermont Senator Jim Jeffords, This program totaled
$1.4 million for five years and enabled VSAC to serve 500
students a year with counseling, mentoring, and scholarship
services. Under the funding cycle for the new GEAR-UP program,
they have applied for $8.4 million for five years. This would
enable them to serve 1,400 students a year with the type of
services they provided through NEISP. VSAC also serves
traditional students and adult students with counseling and
information services through two federal TRIO grants. Their last
TRIO grants, totaling $2.7 million for four years, were awarded
in 1998.
In Fiscal Year 1998, VSAC provided 75,000
students and parents with $140 million in assistance, including
grants, scholarships, summer employment, and loans. Adults make
up an increasing share of the student population and represent
nearly half of the students served by VSAC. The default rate for
VSAC borrowers, currently 4.9 percent, is tied for sixth in the
nation which compares very favorably to a national average of
9.6 percent. While VSAC is technically not a state agency, it is
often referred to as a "quasi-state" agency because it
was established by the state, administers the state grant
program, and works closely with several state agencies to serve
Vermonters. No staff salaries or administrative costs are paid
with state funds. VSAC is managed by a board of directors that
includes two state legislators and the state treasurer.
To cover its costs, VSAC collects fees from
borrowers and the federal government and is also allowed to use
a portion of collections on defaulted loans. The operating
budget to support VSAC activities for Fiscal Year 1999 is $83.7
million. During the year, VSAC expects to originate loans worth
$172.5 million, guarantee loans worth $129 million, and
administer $12.9 million in state grant funds. VSAC periodically
issues tax-exempt revenue bonds to raise money to finance higher
education loans for Vermont students and families. Their largest
source of revenue is the interest payments borrowers and the
federal government make on the loans and investment income from
money they are required to set aside to protect bondholders and
have available for loans between bond sales. The state of
Vermont also provides an annual appropriation for need-based
grants for eligible Vermont students. VSAC insures loans against
default and works with borrowers and schools to keep defaults to
a minimum.
VSAC is located in the Champlain Mill at PO
Box 2000, Winooski VT 05404. The phone number is 655-9602 in the
Burlington area or 1-800-642-3177 toll free. Their e-mail
address is info@vsac.org or check out their web site at http://www.vsac.org.
Copyright 2000
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