Low-income high school students in Vermont may be eligible for $150 vouchers to help them afford a jump-start on college. About 350 stipends, available on a first-come, first-served basis, will cover the costs of “dual enrollment,” such as fees, books and travel.
The Vermont Legislature appropriated $50,000 this spring to support low-income students who might otherwise not be able to take advantage of the chance to take college courses while still in high school. Dual enrollment students who also are eligible for free- and reduced-price lunch can apply for the vouchers.
More than 1,600 students participated in dual enrollment last year, a figure that more than doubled since the program’s inception, according to a news release from the Vermont Student Assistance Corp., which administers the program.
VSAC provides grants, loans, scholarships, career and education planning, and general information to help Vermonters pursue education or training beyond high school. The nonprofit also services federal loans for students around the country.
About 85,000 to 90,000 federal loans are processed through VSAC’s Winooski office. In late 2012, VSAC signed on as one of 11 organizations that contract with the U.S. Department of Education to do loan processing.
VSAC’s current contract expires in 2018. It’s worth $2.5 million in all, including a $1.3 million start-up fee to cover the cost of transferring about 100,000 accounts. In 2018, the federal government will have an option to extend the service agreement another year.
The nonprofit used to process even more federal loans when administration of the Federal Family Education Loan Program was structured differently. Those changes, in 2011, reduced VSAC’s workforce. The company once employed 390 people, a spokesperson said; the VSAC payroll is now about 245. Ninety of those workers process the federal loan programs as part of a larger financial assistance portfolio.
VSAC administers 132 scholarship programs, which in fiscal year 2014 awarded $5.5 million to 1,877 students. Need-based state grants worth $19.6 million were given out to 13,620 students in fiscal year 2013. VSAC also administers the tax-free college savings 529 plan. About 14,000 Vermont students and families now collectively hold about $250 million in savings through the plan.
