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Vermont’s teacher forgivable-loan program draws strong demand; VSAC reports 166 awards in second round
Summary
Vermont Student Assistance Corporation reported strong demand for the state’s teacher forgivable-loan program: 74 awards in the first year, 166 in the second, and nearly 200 qualified applicants left unfunded this cycle. VSAC officials said the program may expand but demographic and retention data are still being collected.
Committee members received an update on the teacher forgivable-loan program from Scott Giles, president and CEO of the Vermont Student Assistance Corporation (VSAC). Giles told the committees the program has attracted strong demand and that VSAC will return with a targeted budget request for continuation and expansion.
Giles said the program was slow to start but gained momentum after outreach to higher-education partners and councils. He reported 74 awards in the program’s first year and 166 awards in the most recent cycle, and that nearly 200 applicants could not be funded because appropriated dollars were exhausted. Giles said approximately 20% of awardees were returning students receiving multiple years of support, and that the program had recipients from every county except one.
Why it matters: the forgivable-loan structure ties financial aid to service in Vermont public schools — recipients agree to teach in Vermont for one year for each year of scholarship aid received — which VSAC officials said both reduces the cost barrier for education candidates and increases the likelihood of practice in local communities.
Giles characterized the program’s effect on recruitment as significant: “One of the really powerful things about this program is that it answers that question very dramatically for them,” he said, referring to prospective students’ concerns about the value proposition of an education degree.
Committee members asked VSAC for follow-up data. Giles said VSAC can report demographics and other characteristics of applicants and award recipients and that long‑term retention data are not yet available because the program is only two years old. He said anecdotal feedback already indicates students who would not otherwise attend postsecondary education are applying because the program reduces financial uncertainty.
VSAC staff told the committees they will provide additional breakdowns — including county-level participation, demographic characteristics, and later retention measures — and indicated a likely future budget ask to continue and expand the program. Several legislators and witnesses expressed support for making the program ongoing rather than one-time funding.
