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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

 

6.65% - 6.90% APR
(6.65% - 6.90% fixed rate)

 

* Rates are for the 2018-2019 academic year. Learn more about how we determine your interest rate – unlike for-profit lenders, we tell you exactly what criteria we will use.

 


 

For the 2017-18 application visit the forms page here.


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Most Rates Lower than the Federal PLUS

Taking out a FEL, or cosigning a student's ASEL (student loan) are ways to help your student finance their education.     

Serviced in Alaska by Alaskans

  • No fees
  • Instant credit check and no credit score requirement
  • Rate discount for recurring online auto-pay

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 (student signature also required)
  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
  • Credit history that does not demonstrate 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 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 the school's financial aid office to complete all school financial aid steps.

 

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: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 the current total principal balance outstanding, including the new loan amount, does not exceed the aggregate limit.

 *enrolled in 15 or more credit hours per semester
 

Interest Rate, APR, and Fees

The FEL has a fixed interest rate of 6.90% (6.90% APR), for both in-school and repayment periods. This means the base interest rate of 6.90% is not subject to change; however, it may be reduced by 0.25% with qualifying Auto-Pay discount. The lowest possible interest rate with discount is 6.65% (6.65% APR). 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 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. 

 

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 the 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.

To qualify for the Auto-Pay discount, you must set-up recurring payments that meet the following conditions:

  • 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.

    ► Rate Discount: 0.25% Auto-Pay

 

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 who have 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 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

You may still qualify for a FEL, even if you have an adverse credit history, if you apply with a credit worthy 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 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 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. 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.

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 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 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

Alaska education loans can be used at career training institutions in Alaska that are not covered by federal loans.

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