Alaska Supplemental Education Loan
The Alaska Supplemental Education Loan (ASEL) provides funding to cover educational expenses for qualified students attending postsecondary institutions in Alaska, and qualified Alaska residents attending postsecondary institutions outside Alaska.
The following steps can keep your costs as low as possible:
- Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov as soon as possible after January 1st of each year for the best shot at scholarships or grants.
- Before borrowing, choose scholarships, grants, and other awards that don't have to be repaid.
- Contact your school's financial aid office for information about institutional and other aid available at that school.
- If you need to borrow, consider the federal Stafford loan first; it's the lowest-cost loan available with no credit requirements.
- If you need to borrow beyond the federal Stafford loan, the ASEL is the next best option for Alaska Students.
Compare the Alaska Supplemental Education Loan to the Federal Direct Unsubsidized Stafford Loan.
Alternative Consolidation Loan
The Alternative Consolidation Loan allows students to consolidate all of their current ACPE alternative 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.
A fixed monthly payment pays off the loan within a 10-year period; however, the Alaska Commission on Postsecondary Education (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.
Alaska Family Education Loan
To help cover education expenses for a student, family members, such as a spouse, parent, or grandparent, can take out the Alaska Family Education Loan (FEL). The FEL can be an alternative or a supplement to loans under the Federal Direct Program, such as the PLUS loan.
Paying for education is an investment in a student's future career options. When grants, scholarships, and savings don't cover related costs, education loans -taken out by the student or a family member - can be a good choice when a smart career plan is in place and you keep costs low.
Federal subsidized student loans are the lowest-cost education loans and should be the first source of loan aid used to fund a student's education.
- After subsidized federal student loans, families can compare other top options - ACPE's state education loans, and federal parent loans, to determine what is right for them.
- Private lenders may also offer alternative education loans. Be wary of teaser interest rates that can vary (meaning they change - and can go up significantly), interest that capitalized (is added to the balance of the loan) on a frequent basis, and fees that may greatly increase borrower costs.
Compare the Alaska Family Education Loan to the Federal Direct Parent Loan for Undergraduate Students (Direct PLUS).