Family Education Loan (FEL)

How to Apply

1. Apply online (or fill out a paper application)
2. Add a cosigner if you don't meet the credit requirements
3. Review your loan terms
4. Sign your loan documents online or mail them to ACPE (student signature also required)
5. You're done!

Eligibility

• Borrower and student must be Alaska residents
• Student must be enrolled at least full-time
• Borrower credit history does not demonstrate a chronic inability or unwillingness to pay an extension of credit
• Meet all other requirements under AS 14.43.750 and 20 AAC 15.510

Accepting Your Award

Once your FEL is approved, we will send you a loan approval disclosure (LAD). You must accept the disclosure before the funds can be disbursed to your school. The quickest way to review the disclosure and accept your loan is to complete the process electronically through your online account.

Disbursement

After you accept the loan approval disclosure (LAD), 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 their school's financial aid office to complete all school financial aid steps.

Loan Limits

Note: You can receive additional loans, even if you have exceeded the initial aggregate limit, if you borrowed under this loan program for more than one student and if your account's total outstanding principal balance, including the new loan amount, does not exceed the aggregate limit.

 *enrolled in 15 or more credit hours per semester
 

Interest Rate

The FEL has a fixed interest rate of 6.00% (6.00% APR), for both in-school and repayment periods. This means the base interest rate is not subject to change; however, it may be reduced by 0.25% with a qualifying Auto-Pay discount. With the Auto-Pay discount, the lowest possible interest rate is 5.75% (5.75% APR). For more about how we set your rate: acpe.alaska.gov/myrate
 

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 student scheduled to graduate in four years. The APR reflects the interest rate without the Auto-Pay benefit. 

Rate Discount

Auto-Pay Discount: You may be eligible to receive a 0.25% interest rate reduction on your loan by authorizing ACPE to automatically deduct qualifying loan payments from a checking or savings account during in school and repayment periods. The reduction will remain in effect as long as qualifying automatic payments continue without interruption and the following conditions are met:  

• In-school/Deferment/Forbearance Periods - Payments made during the in school, deferment and forbearance periods must be a minimum of $50.00 per loan.
   
• Repayment Period – Your loan must be current in repayment, and payments must be a minimum of $5.00

Minimum credit scores are not required to qualify for the FEL; however, you cannot have an adverse credit history, such as records of delinquencies. Individuals with good credit or no credit may be approved.

The online application process gives you the opportunity to send an instant request to a potential cosigner if you do not meet the credit requirements. Visit Understanding Credit to learn more about FICO scores, credit reports, and establishing good credit.

Consider a Cosigner

You may still qualify for a FEL, even if you have an adverse credit history, if you apply with a creditworthy cosigner. ACPE encourages borrowers who do not meet the credit requirements to consider adding a cosigner who has a minimum 680 FICO credit score.

What is a Cosigner?

A cosigner 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 primary borrower.

ACPE may notify the cosigner of delinquency in repayment, deferments granted, or any repayment agreement that increases the amount due on the loan. Borrowers may elect to apply with a cosigner to ensure the application is creditworthy. If you elect to apply with a cosigner and the loan is approved, your cosigner will be a responsible party for the loan even if you meet the credit conditions independently.

For more information about a Cosigner click here        

Repayment

Repayment begins when the final disbursement is sent to the school, the student drops below a full-time enrollment status, withdraws from school, or graduates, whichever is sooner. The first payment is due approximately 60 days after final disbursement. The standard repayment period is ten years. Monthly payments are based on the borrower's total student loan debt with ACPE, subject to a minimum payment of $50.00 per month.

How can you keep loan costs low?

• Develop a budget and pay bills on time
• Prepay your loan - even during periods when payments are not required
• 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

The FEL may be used at career-training schools in Alaska that do not participate in federal financial aid programs.

A complete list of Alaska institutions that are eligible to receive ACPE loans can be found here.        

Out-of-state

Alaska residents can use the FEL to attend postsecondary institutions in Alaska or in the Lower 48. Check with the school's financial aid office or contact us if you would like to find out if the FEL can be used at the student's selected school. Call toll free 800-441-2962 or in Juneau 907-465-2962 or email us at ACPE@alaska.gov