Interest Rate, APR, and Fees
The FEL has a fixed interest rate of 7.30% (8.40% APR) with a 5% origination fee. This means the base interest rate of 7.30% 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 $8,500 and an origination fee of 5% for a freshman borrower scheduled for graduation in four years with repayment beginning after a six-month grace period. Learn more about APR. The APR reflects the interest rate without borrower benefit reductions. The FEL’s 5% origination fee is taken out at the time of disbursement. 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
Credit Score 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.
Accepting Your Award
The student is required to sign the FEL application prior to approval. Once the FEL is approved, we will send you a loan application disclosure that you need to accept. The quickest way to review the disclosure and accept your loan is to complete the process electronically through your online account.
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.
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. Learn more about repayment plans, payment methods, and repayment assistance.
OR download a paper application