VSAC briefs Commerce & Economic Development committee on workforce-focused grants, forgivable loans and hospital training partnership

Scott Giles, president and CEO of the Vermont Student Assistance Corporation (VSAC), outlined on Jan. 23 a suite of state, federal and private programs aimed at connecting Vermonters to short-term training and high-demand jobs.

Giles told the Vermont House Committee on Commerce and Economic Development that VSAC has broadened its work since its founding in 1965 to serve adult learners and non‑degree career pathways as well as traditional college students. "This year is actually going to be our 60th anniversary," Giles said. "This grant is a grant for adults."

The presentation focused on several workforce-oriented programs the committee has supported: the Advancement Grant (need‑based awards for adults pursuing non‑degree credentials), the Vermont Trades Program (forgivable loans for trade education tied to a work commitment in Vermont), the 802 Opportunity program (tuition and fee support at CCV for families earning up to $75,000), and a new hospital partnership that issues education loans repaid by hospitals as employees complete training.

Why it matters: committee members pressed Giles on how the programs relieve labor shortages in health care and the trades and whether investments reduce costly temporary staffing. Giles said the programs are already funneling trained workers into employers that have high demand and high pay, and he urged continued legislative support.

Key program details Giles provided: VSAC now awards about $3,700,000 a year through the Advancement Grant to support adult learners pursuing short-term credentials such as CDLs, child care certifications and phlebotomy. The Vermont Trades Program operates as a forgivable‑loan model with an income eligibility threshold higher than the Advancement Grant (Giles cited a $100,000 family‑income threshold in parts of the program) and requires recipients to work in Vermont for a year for each year of support; VSAC reported disbursing roughly $1,000,000 to 163 students in 2023 and about $2,500,000 to 242 students in 2024.

Giles said the 802 Opportunity program — created with committee input — serves more than 2,600 Vermonters annually and targets households with family income at or below $75,000, providing tuition‑and‑fee support at the Community College of Vermont (CCV). He said the VSAC budget request to the governor proposes raising that eligibility threshold to $100,000. VSAC also administers about 140 private scholarship programs and a state need‑based grant program (the largest state‑funded program VSAC runs).

On health care staffing, Giles described a hospital partnership launched with the Vermont Business Roundtable and a coalition of hospitals. Under that model, hospitals identify incumbent employees who could become clinicians, fund their training, and commit to repaying education loans in increments as employees work for the hospital. Giles said the pilot expanded from 21 nursing students to about 80 across participating hospitals in roughly two years. He cited a recent Auditor of Accounts figure — as reported in his presentation — that the University of Vermont Health Network spent nearly $70 million a year on travel nurses and that the broader hospital network spent about $100 million; Giles said those costs motivate employer participation in training programs.

Giles noted VSAC also administers multiple forgivable‑loan programs aimed at professions with shortages — nursing, teachers, dental hygienists, dentist incentives, and mental‑health clinicians — and that some pandemic‑era, one‑time funding streams (for example, a mental‑health forgivable‑loan) have been fully expended and would need new legislative appropriations to continue.

Committee members asked for follow up data. A member asked whether the hospital partnership has produced measurable reductions in traveler spending; Giles said those analyses are not available yet but that VSAC can work with hospitals to produce proxy estimates of fewer travelers hired as program participants graduate and remain on staff. Chair Mike Markot told Giles the committee will invite him back during the appropriations process to present budget details and preliminary program outcomes. "We'll certainly have you back in during the appropriation process," Markot said.

Giles also described VSAC’s adult counseling work (the Educational Opportunity Center), data and research capacity (senior survey, data‑sharing agreements with the Agency of Education), and a new partnership with HireAbility Vermont to better reach learners with disabilities. He emphasized the role of school counselors, CCV, and local outreach in publicizing programs such as 802 Opportunity.

What the committee did not decide: there were no formal votes or motions recorded during this presentation. Committee members requested additional data and signaled interest in considering the programs during budget deliberations.

Next steps: VSAC will prepare follow‑up material for the committee, including potential estimates of cost savings for hospitals and a fuller budget presentation during the appropriations cycle.