The Vermont Student Assistance Corp. is poised to get $1.3 million in federal funds to service federal student loans, which would be a new role for the organization.
But the federal legislation that is bringing VSAC the money only ensures it will be given 100,000 accounts to service. Officials say they need at least 350,000 accounts to break even.
The Burlington Free Press says VSAC and Vermont’s congressional delegation are urging the Department of Education to provide the Vermont organization more accounts.
Last year, Congress eliminated the federal student loan program that had been VSAC’s main source of revenue.
VSAC is in the process of reducing the size of its staff. Four years ago VSAC employed about 400 people, within the next few months that number will be about 255.