Alaska Supplemental Education Loan

Alaska Supplemental Education Loan (ASEL)

ASEL is a low-cost option to use in-state, out-of-state, or for career training. 


    • 5.94% (6.25% fixed rate) Annual Percentage Rate (APR)

    • - 0.25% auto-pay benefit

    • - 0.50% Alaska Presence benefit

    • No origination fee

    • No payments while you're a full-time student

    • No penalty for paying off your loan early

    • Serviced in Alaska by Alaskans


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        Lower interest rate than the Federal PLUS Loan
  • How to Apply
  • Loan Limits
  • Interest Rate & APR
  • Borrower Benefits
  • Credit Requirements
  • Consider a Cosigner
  • Repayment
  • Career Training
  • Out-of-State

How To Apply

  1. Apply online (or fill out a paper application)
  2. Add a cosigner if you don’t have a qualifying credit score
  3. Sign your loan documents online or mail them to ACPE
  4. Accept the terms set out in your loan disclosure
  5. You’re done!

Eligibility

  • Be an Alaska resident, or attend an eligible Alaska school
  • Have a FICO credit score of at least 680, or apply with an eligible cosigner
  • Be enrolled at least half-time
  • Meet all other requirements under AS 14.43.172 and 20 AAC 15.705

Accepting Your Award

Once your ASEL is approved, we will send you a loan application disclosure. You must accept the disclosure before the funds can be disbursed to your school. The quickest way to review the disclosure and accept your loan is to complete the process electronically through your online account.


Disbursement

After you accept your loan application disclosure, your ASEL funds will be sent directly to your school's financial aid office, in accordance with their scheduled financial aid disbursement dates.

Loan Limits - Program Year 2015-2016

Program
Annual
Aggregate
Undergraduate On-time enrollment - up to $14,000
Full-time enrollment - up to $12,500
Half-time enrollment - up to $7,500
$56,000
Graduate Full-time enrollment - up to $15,000
Half-time enrollment - up to $7,500
$60,000
Career Training Vocational - up to $10,000
Programs must be at least 180 hours over a period of not less than six weeks   and result in a terminal certificate.

Flight school - up to $10,000
Programs must log a minimum of 17 hours per month or 51 hours for a three-month period and result in a terminal certificate. 
$56,000


Note:
Aggregate maximums include loans paid-in-full and loans from the Alaska Supplemental Loan Program, Memorial Education Loan Programs and the Teacher Education Loan Program.

Interest Rate, APR, and Fees

The ASEL has a fixed interest rate of 6.25% (5.94% APR), for both in-school and repayment periods. This means the base interest rate of 6.25% is not subject to change; however, it may be reduced by borrower benefits.


What is APR?

APR stands for the Annual Percentage Rate and is the yearly cost of borrowing your loan, shown as a percent of the amount you borrowed. The APR referenced above is an example and assumes a principal loan amount of $10,000 for a freshman borrower scheduled for graduation in four years with repayment beginning after a six-month grace period. The APR reflects the interest rate without borrower benefits.



Borrower Benefits

Borrower benefits are applied as quarterly or annual account credits or rate reductions to reduce the borrower-paid loan costs whenever the Alaska Student Loan Corporation (ASLC) has the capacity to do so. Benefits are variable, meaning that a new benefits package may be offered each program year. Borrowers who are delinquent or default on their loans may forfeit some or all benefits. For a complete list of benefits, see our Borrower Benefits page.

► 2015-2016 Benefits: 0.25% Auto Pay and 0.50% Alaska Presence



Credit Requirements

To qualify for the ASEL, you must have a FICO score of at least 680 or an eligible cosigner. The online application process gives you the opportunity to send an instant request to a potential cosigner if you don't have the required FICO score.

Visit our Understanding Credit page to learn more about FICO scores, credit reports, and establishing good credit.

Consider a Cosigner

Borrowers who have little or no credit history may have difficulty qualifying for a student loan. ACPE encourages borrowers who do not meet the credit requirements to consider a cosigner for their student loan.


What is a Cosigner?

A cosigner on a loan assumes responsibility for the loan if the borrower should fail to repay the loan. A cosigner has an independent responsibility to repay the loan and to notify ACPE in the event of changes affecting the cosigner or the student borrower.

ACPE may notify the cosigner of delinquency in repayment, deferments granted, or any repayment agreement that increases the amount due on the loan. You may elect to provide a cosigner to ensure your application is found to be creditworthy. If you elect to provide a cosigner in support of your loan request, that person will continue to be a responsible party for the loan even in the event you meet the credit conditions independently.


Repayment

Repayment begins six months after you stop attending school at least half time, or reduce your enrollment (for example, if you drop from full time to half time). The standard repayment period is ten years. Your monthly payment will be based on your total debt, subject to a minimum payment of $50.00 a month.


How can you keep loan costs low?

  • Develop a budget and pay bills on time
  • Prepay your loan before while in a non-payment status, such as in school or in grace
  • Choose a repayment plan and payment method that’s right for your situation
    Learn more about repayment plans, payment methods, and repayment assistance.

Career Training

Alaska education loans can be used at career training institutions in Alaska that are not covered by federal loans. Use the ASEL or FEL at institutions such as Trend Setter’s School of Beauty, Elmendorf Aero Club, or Northern Industrial Training and more.

For a complete list of institutions that accept Alaska Education Loans please visit the Alaska Postsecondary Institutions page and look for “AEL” in the right hand “Financial Aid Programs” column.


Out-of-state

Alaska education loans can be used by Alaska residents attending educational institutions in Alaska or in the lower 48. Check with the school’s financial aid advisor or contact us if you would like to find out if you can use an Alaska education loan at the school of your choice. Call toll free 800-441-2962 or in Juneau 907-465-2962 or email us at customer.service@alaska.gov

Non-residents are eligible for the  Alaska education loan by attending a participating school physically located in Alaska.