Interest Rate, APR, and Fees
The PSEP has a fixed interest rate of 4.80% (4.80% APR) in school and a 7.30% (7.30% APR) in repayment. This means the base interest rate of 7.30% is not subject to change; however, it may be reduced by Borrower Benefits while in repayment. 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. Learn more about APR. The APR example above assumes a 4-year dental student, principal loan amount $23,400, no origination fee, and a repayment term of 15 years. The interest rate and APR do not factor in any reductions due to borrower benefits. There is no origination fee for the PSEP loan. View more loan cost examples.
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.
► 2013-2014 Benefits: 0.25% Auto Pay and 0.50% Alaska Presence during repayment
To qualify for the PSEP, you must have a credit history that documents your ability and willingness to pay an extension of credit or have an eligible cosigner. Visit our Understanding Credit page to learn more about credit reports and establishing good credit.
Resident Tuition and Support Fee
Alaska students are responsible for paying both tuition and the support fee to participate in the PSEP. Students generally pay a lower tuition at the institution they attend. Each year the support fee is covered by ACPE and a loan is created that the student must repay after graduation.
Upon receipt of the institution’s acceptance letter, ACPE will send the PSEP Master Promissory Note for completion. Your funds will be sent directly to your school’s financial aid office, in accordance with their scheduled financial aid disbursement dates and procedures.
Repayment begins six months after you stop attending school at least 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. Learn more about repayment plans, payment methods, and repayment assistance.