General Provisions

V.S.A. tit. 16, ch. 87, subch. 1

in effect

16 V.S.A. § 2821 Student Assistance Corporation; purpose

2821. Student Assistance Corporation; purpose (a) There is hereby established a nonprofit public corporation to be known as the Vermont Student Assistance Corporation whose purpose shall be: (1) to provide opportunities for persons who are residents of Vermont to attend colleges or other postsecondary education institutions by awarding grants, guaranteeing, making, financing, and servicing loans of funds to students qualifying under the terms and conditions set forth in this chapter; (2) to provide career, educational, and financial aid counseling and information services; and (3) for such other purposes not inconsistent therewith. (b) The Corporation and its existence shall continue as long as it shall have notes, bonds, or other obligations outstanding, including notes, bonds, or other obligations hereafter issued or incurred, and until its existence is terminated by law. The net earnings of the Corporation, beyond that necessary for retirement of its notes, bonds, or other obligations or to implement the public purposes and programs authorized in this chapter shall not inure to the benefit of any person other than the State. Upon termination of the existence of the Corporation, title to all of the property owned by the Corporation, including any net earnings of the Corporation, shall vest in the State. The State reserves the right at any time to alter, amend, repeal, or otherwise change the structure, organization, programs, or activities of the Corporation, including the power to terminate the Corporation, subject to any limitation on the impairment of the obligations of any contract or contracts entered into by the corporation. (c) Notwithstanding any general or special law to the contrary, the provisions of 8 V.S.A. chapter 73 shall not apply to the Corporation or to any loan made or serviced by the Corporation in accordance with this title. Added 1965, No. 198, § 1(a); amended 1975, No. 170 (Adj. Sess.), § 1; 1981, No. 174 (Adj. Sess.), § 1, eff. April 20, 1982; 1993, No. 147 (Adj. Sess.), § 1; 2003, No. 86 (Adj. Sess.), § 2; 2009, No. 96 (Adj. Sess.), § 3, eff. January 1, 2011; 2017, No. 22, § 30, eff. Jan. 1, 2011; 2019, No. 131 (Adj. Sess.), § 97.

16 V.S.A. § 2822 Definitions

2822. Definitions As used in this chapter: (1) “Corporation” means the Vermont Student Assistance Corporation. (2) “Board” means the Board of Directors of the Vermont Student Assistance Corporation. (3) “Student” means any person who: (A) has graduated from a secondary school, satisfied the requirements for graduation by passing examinations covering the subject matter of a secondary school curriculum, or met the eligibility criteria established by the U.S. Secretary of Education for the receipt of student financial assistance under Title IV of the Higher Education Act, and in each case who is attending or plans to attend an approved postsecondary education institution; or (B) is attending an approved postsecondary education institution. For the purposes of the student loan program, “student” means a student as defined by the Board and which definition shall not be inconsistent with federal regulations. (4) “Parents” means a student’s parent or parents as determined by the Corporation consistently with the requirements of the federal financial assistance programs established under Title IV of the Higher Education Act. (5) “Adjusted gross income” means an individual’s adjusted gross income under the laws of the United States relating to federal income taxes for the tax year next preceding the school year for which a grant or loan is sought. (6) “Approved postsecondary education institution” means any institution of postsecondary education that is: (A) certified by the State Board of Education as provided in section 176 or 176a of this title; (B) accredited by an accrediting agency approved by the U.S. Secretary of Education pursuant to the Higher Education Act; (C) a non-U.S. institution approved by the United States Secretary of Education as eligible for use of education loans made under Title IV of the Higher Education Act; or (D) a non-U.S. institution designated by the Corporation as eligible for use of its grant awards. (7) “Resident” means, with respect to a student, a student who has been domiciled in Vermont for the year preceding the date of commencement of the relevant semester or academic program. A residence established in Vermont for the purpose of attending an educational institution shall not of itself be sufficient to establish domicile in Vermont. Whenever a resident student loses his or her Vermont domicile, as in the case of a minor whose parents move from the State, the student shall thereafter be reclassified as a nonresident. (8) “Taxable,” when used in reference to a note, bond, or other obligation means that the interest on that obligation is includable in the gross income of the holder under the laws of the United States relating to federal income taxes. (9) “Higher Education Act” means the federal Higher Education Act of 1965, Pub. L. No. 89-329, 20 U.S.C. chapter 28, as amended, together with the regulations promulgated under that Act by the U.S. Secretary of Education. Added 1965, No. 198, § 2(a)-(i); amended 1967, No. 131, § 9; 1967, No. 371 (Adj. Sess.), § 1, eff. March 27, 1968; 1971, No. 175 (Adj. Sess.), § 1, eff. March 28, 1972; 1973, No. 69, § 1, eff. April 14, 1973; 1973, No. 157 (Adj. Sess.), § 1, eff. March 15, 1974; 1975, No. 170 (Adj. Sess.), § 2; 1985, No. 24, § 2, eff. April 26, 1985; 1993, No. 147 (Adj. Sess.), § 2; 2003, No. 21, § 2; 2003, No. 86 (Adj. Sess.), § 3; 2019, No. 131 (Adj. Sess.), § 98.

16 V.S.A. § 2823 Powers of Corporation

2823. Powers of Corporation (a) The Corporation may acquire by gift or otherwise, hold, and dispose of property in fee or in trust, or any other estate, for the purposes set forth in this chapter and shall be an instrumentality of the State. The State shall support and maintain the Corporation. (b) The Corporation has the general powers provided to Vermont nonprofit corporations. (c) The Corporation is hereby designated as the state agency to receive federal funds assigned to the State of Vermont for student financial aid programs. (d) The Corporation is authorized to make and finance the making of education loans and to issue its debt obligations for the purpose of acquiring funds therefor. No resolution or other action of the Corporation providing for the issuance of such debt obligations may be effective without the approval in writing of the Governor. (e) The Corporation is authorized to develop and implement loan programs, including programs for the guaranteeing, servicing, originating, and financing of education loans for borrowers and lenders located both within and outside the State, including the federal Direct Loan Program and other education loans made pursuant to federal law. The Corporation is authorized to make loans to residents and nonresidents. (f) The Corporation is authorized to borrow money and issue its debt obligations to further the governmental and public purposes set forth in this chapter, including the purchase, construction, renovation, reconstruction, rehabilitation, improvement, furnishing, and equipping of office or other business space to be owned or leased by the Corporation for use by the Corporation to further the governmental and public purposes set forth in this chapter. Notwithstanding subsection 2868(i) of this chapter, notes, bonds, or other obligations issued under this section may be direct and general obligations of the Corporation, and may be otherwise secured as the Corporation shall determine, including by a mortgage. No debt obligation issued under this subsection may be effective without the approval in writing of the Governor. Such obligations shall not be deemed to constitute a debt or liability or obligation of the State of Vermont or of any political subdivision of it, nor shall they be deemed to constitute a pledge of the faith and credit of the State or of any political subdivision thereof. Each obligation issued by the Corporation under this section shall contain on its face a statement to the effect that neither the faith and credit nor the taxing power of the State of Vermont or any political subdivision of it is pledged to the payment of the principal or the interest on these obligations. Added 1965, No. 198, § 1(b), (c); amended 1967, No. 131, § 1; 1975, No. 170 (Adj. Sess.), § 3; 1981, No. 174 (Adj. Sess.), § 2, eff. April 20, 1982; 1993, No. 147 (Adj. Sess.), § 3; 2001, No. 58, § 6, eff. June 16, 2001; 2003, No. 86 (Adj. Sess.), § 4.

16 V.S.A. § 2825 Tax exemptions

2825. Tax exemptions All real and personal property of the Corporation is exempt from taxation. All bonds, notes, and other obligations issued pursuant to this chapter are issued by a body corporate and public of this State and for an essential public and governmental purpose and those bonds, notes, and other obligations, and the interest on and income from them, except as otherwise provided by resolution of the Corporation authorizing the issuance of taxable debt pursuant to section 2868 of this title, and all activities of the Corporation and fees, charges, funds, revenues, incomes, and other monies of the Corporation whether or not pledged or available to secure the payment of these bonds, notes, or other obligations, or interest thereon, are exempt from all taxation, franchise taxes, fees, or special assessments of whatever kind except for transfer, inheritance, and estate taxes. Added 1965, No. 198, § 9; amended 1981, No. 174 (Adj. Sess.), § 3, eff. April 20, 1982; 2003, No. 86 (Adj. Sess.), § 5; 2019, No. 131 (Adj. Sess.), § 99.

16 V.S.A. § 2826 Statutory purposes

2826. Statutory purposes (a) The statutory purpose of the exemption for interest income from Vermont Student Assistance Corporation bonds in section 2825 of this title is to lower the cost of borrowing in order to finance education loan programs. (b) The statutory purpose of the exemption for Vermont Student Assistance Corporation property tax in section 2825 of this title is to allow State instrumentalities that provide financial and information resources for postsecondary education and training to use all of their resources for those purposes. Added 2013, No. 200 (Adj. Sess.), § 1.

16 V.S.A. § 2827 Confidentiality of personally identifying information

2827. Confidentiality of personally identifying information Except as otherwise provided by law, or by consent of the individual identified in the record, information that directly or indirectly identifies applicants, recipients, beneficiaries, or participants in programs administered by the Corporation, including grant, loan, scholarship, outreach, or investment plan programs, is exempt from public inspection and copying under the Public Records Act and shall be kept confidential. Added 2015, No. 29, § 4.

16 V.S.A. § 2828 Financial aid eligibility for certain students

2828. Financial aid eligibility for certain students (a) Notwithstanding any provision of law to the contrary, a resident who is otherwise eligible for a State-funded financial aid program administered by the Corporation shall not be ineligible solely on the basis of such resident’s immigration status under federal law. (b) The Corporation shall establish procedures and forms that enable residents eligible under subsection (a) of this section to apply for, and participate in, all State-funded student financial aid programs administered by the Corporation for which such residents are eligible to the full extent permitted by federal law. The Corporation may collect such information as is necessary to confirm eligibility for participation in programs administered by the Corporation. (c) The Corporation may adopt rules pursuant to 3 V.S.A. chapter 25 as necessary to carry out the provisions of this section. (d) The Corporation shall include information regarding the impact of this section and the number of students who receive financial aid pursuant to this section in its biannual report to the General Assembly pursuant to subsection 2835(c) of this title. Added 2023, No. 136 (Adj. Sess.), § 3, eff. July 1, 2025.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/16/087Fetched: 10/21/2026