Alternative Consolidation

Note: The Alternative Consolidation Loan will be discontinued June 30, 2017. Learn more about our new Refi Loan, which allows you to consolidate ACPE, federal, and other private loans, here.


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Alternative Consolidation Loan

 

The Alternative Consolidation Loan allows students to consolidate current ACPE alternative student loans into a single fixed-rate loan. Depending on when you took out your alternative loans, the interest rates you are now paying may be less than the consolidation interest rate. Compare the terms and interest rates of your current loans with the consolidation interest rate before deciding if consolidation is right for you. The following rates and benefits are for the 2016-2017 academic year, effective July 1, 2016.

Explore the benefits

  • 6.25% (6.25% APR) fixed interest rates

  • Rates as low as 6.00% with borrower benefits

  • 0.25% automatic payment reduction

  • A balance based repayment term, 10 or 15 years depending on your consolidated balance

Eligibility

  • Be a U.S. citizen or eligible non-citizen and Alaska resident

  • Have two or more alternative loans with ACPE

  • Have a minimum of $3,500 of eligible debt to consolidate

  • Be less than 60 days past due on any loan you wish to consolidate

  • Meet credit and other requirements

How to apply

  1. Download a paper application

  2. Sign your loan documents and mail them to ACPE

  3. You're done!

Interest Rate, APR, and Fees

The Alternative Consolidation Loan has a fixed interest rate of 6.25% (6.25% APR). This means the base interest rate of 6.25% is not subject to change; however, it may be reduced by Borrower Benefits. 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 and a repayment term of 10 years. Learn more about APR. The interest rate and APR do not factor in any reductions due to borrower benefits.

About 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 chart.

2016-2017 Benefits: 0.25% Auto Pay

Credit Score Requirements

To qualify for the Alternative Consolidation Loan, you must have a FICO score of at least 680 or have made payments in full and on time for the 18 months preceding the consolidation loan application. Visit our Understanding Credit page to learn more about FICO scores, credit reports, and establishing good credit.

Repayment

Repayment will begin no later than 30 days from the date the consolidation loan is originated. The standard repayment period is ten years; however, ACPE will extend the period of repayment for up to five years if the amount of your loan exceeds $30,000. This option permanently reduces the required monthly payment amount, but results in higher finance charges over the life of the loan. You must contact ACPE if you wish to pay your loan within a shorter term. Your monthly payment will be based on your total debt, subject to a minimum payment of $100.00 a month.

Consolidating existing loans and entering into a new loan contract means that the terms and conditions of the loans being consolidated are no longer applicable. The consolidation loan terms do not provide any forgiveness or interest-free deferment periods. It's important that you review the terms and conditions of yor existing loans and of the consolidation loan carefully. Learn more about repayment plans, payment methods, and repayment assistance.