State Loan Programs
* State education loans from program inception through the 2001-02 school year are identified as Alaska Student Loans (ASL). State education loans awarded after the 2002 school year are identified as Alaska Supplemental Education Loans (ASEL). It is important to note that terms and conditions associated with these loans vary.
A fixed monthly payment pays off the loan within a 10- or 15-year period, based on the year you received your loan and the type of loan you received. The standard repayment schedule will be established for you.
ACPE will allow borrowers to extend their loans to a 15-year repayment term in certain circumstances. The cost to repay the loan is higher if borrowers opt to extend their loans, but there are no penalties for paying loans off early.
Temporary Payment Reduction
Your monthly payment is reduced when you experience a short-term financial hardship. After this temporary period, your loan payments increase so you pay your loan off within the scheduled repayment period.
You may be eligible to receive a 0.25% interest rate reduction on your loan by having qualifying loan payments deducted from a checking or savings account during the in-school, grace, and repayment period.
To qualify, your payments must meet the following conditions:
- In-school/Grace/Deferment/Forbearance Period - Payments made during the in-school, grace, 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.
How to Repay State Education Loans
Responsible repayment of your student loans is an essential part of building a solid financial future. You can successfully repay your state education loans by following these four simple steps:
- Manage your account online.
Accessing your online account is a secure and convenient way to review your loan balances and due dates, to schedule payments and view monthly statements, and much more. This is a great way to track and update your account 24 hours a day!
- Understand your repayment obligation.
You will receive a letter approximately 45 days before repayment is scheduled to begin that will provide your repayment terms. This repayment disclosure will include the following information:
- The monthly payment amount, due date, and number of payments
- The balance you owe on your loan
- Information about rates, fees, and finance charges
Approximately three weeks before your first payment is due, you will be provide with a monthly billing statement.
- Make your payments on time.
Pay your student loans on time, all the time. If you think you have missed a payment, or you might need to make a late payment, be sure you know how delinquency and default will impact you. Remember that delinquency has serious consequences.
- Contact your servicer if you are not able to pay the amount due.
If you are having trouble making your payments, there are a variety of repayment options that may meet your needs. As your life circumstances change, these options allow you to change the way you pay back your loans. These can be especially helpful if you are faced with unemployment, or a health or financial crisis.