Family Education Loans

Family Education Loan (FEL)

An option for family to help cover education costs. The following family members can take out a FEL on behalf of the student:

  • Spouse
  • Parent
  • Step-parent
  • Foster Parent
  • Grandparent

  •  

     

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

    • - 0.25% auto-pay benefit

    • Serviced in Alaska by Alaskans

    • No origination fee

    • No credit score requirement

     

    * The following rates and benefits are for the 2016-2017 academic year.

     

     

    2017-18 Loan Application Notification

    Sign up to get an email when the 2017-18 ASEL & FEL application is ready

    Submit
    * Required
    Eligibility
    • Be a U.S. citizen or eligible non-citizen
    • Alaska residency for both borrower and student
    • Have a student who is enrolled at least full-time at an eligible postsecondary school
    • Not be delinquent or in default on an Alaska education loan or be past due in Alaska child support obligations

    Ready to apply?


    Apply Now

     

       
            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

    • Alaska residency for both borrower and student
    • Student who is enrolled at least full-time
    • Must not have a credit history that demonstrates chronic inability or unwillingness to pay an extension of credit
    • Meet all other requirements under AS 14.43.750 and 20 AAC 15.510

    Disbursement

    After you accept the loan application disclosure, the FEL funds will be sent directly to the school's financial aid office, based on their scheduled financial aid disbursement dates. Be sure your student works with the school's financial aid office to ensure all school financial aid steps are completed.

    Loan Limits

    Program
    Annual
    Aggregate
    Undergraduate On-time enrollment - up to $14,000
    Full-time enrollment - up to $12,500
    $56,000
    Graduate Full-time enrollment - up to $15,000 $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:
    A borrower who receives loans under this loan program on behalf of more than one student and has borrowed up to the aggregate limit, may receive additional loans if the current total principal loan balance owed by the borrower, including the new loan amount, does not exceed the aggregate limit.

    Interest Rate, APR, and Fees

    The ASEL has a fixed interest rate of 6.25% (6.25% 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.

    ► 2016-2017 Benefits: 0.25% Auto Pay and 0.50% Alaska Presence



    Credit Requirements

    Minimum credit scores are not required to qualify for the FEL. However, borrowers who have an adverse credit history, such as records of delinquencies will not be approved. Borrowers who have good credit or no credit are encouraged to apply.

    The online application process gives you the opportunity to send an instant request to a potential cosigner if you are unable to meet the credit requirements. Visit Understanding Credit to learn more about FICO scores, credit reports, and establishing good credit.

    Consider a Cosigner

    Borrowers who have adverse credit history may have difficulty applying for a Family Education 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 after the loan is fully disbursed; the first payment is scheduled within 60 days of final disbursement. The standard repayment period is ten years. Your monthly payment will be based on your total student loan debt with ACPE, 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