When it comes to repaying your education loans, there is a lot to consider. Understanding the details of repayment can save you time and money.

Grace Period

Your grace period is the amount of time you have before your first payment is due. Payments are not required during your grace period; however, you can begin repaying your loans before the grace period ends. Making payments early and often will save you money, lower your overall balance, and may even shorten you loan repayment term. Review your promissory note for details about your grace period.

Repayment

Responsible repayment of your student loans is an essential part of building a solid financial future. You can successfully repay your education loans by following these four simple steps:

1. Manage your account online.

ACPE borrowers have the option of managing their accounts 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!

2. 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, ACPE will provide you with a monthly billing statement.

3. 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.

ACPE offers several options to make paying easy and convenient. Become familiar with the various payment methods, including automatic payments, telephone payments, and one-time online payments.

4. Contact ACPE if you are not able to pay the amount due.

If you are having trouble making your payments, ACPE offers 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.

The standard repayment plan offers the lowest total costs over the life of the loan. Other repayment plans are available to borrowers who meet eligibility requirements. If you choose a plan other than the standard repayment plan, you may lower your monthly payments but increase the amount you owe over time.

State Loan Programs

• Alaska Student Loan
• Alaska Supplemental Education Loan
• A.W. "Winn" Brindle Memorial Education Loan
• Alaska Teacher Education Loan
• Guaranteed Student Loan

Standard Repayment

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. ACPE establishes the standard schedule for you. You pay the least amount in finance charges on this repayment plan.

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. This option does not bring your loan payments current.

Federal Loan Programs

• Stafford Loans
• PLUS Loans
• FFELP Consolidation Loans

Standard Repayment

You pay a fixed monthly payment amount that will pay off the loan within a ten-year period. ACPE establishes the standard schedule. You pay the least amount in total finance charges on this repayment plan.

Income Based Repayment (IBR)

Your loan payment is based on income and family size. IBR is available for all federal student loans, except parent PLUS loans. You must have a partial financial hardship to enroll. This plan is designed to make repaying education loans easier for students who intend to pursue jobs with lower salaries, such as careers in public service. It caps the monthly payment at 15% of your discretionary income, which is the difference between your Adjusted Gross Income and 150% of the poverty guideline for your family size and state of residence). After 25 years of qualifying repayment, any remaining balance on the loan may be forgiven. You may have to pay taxes on the amount forgiven. For more information visit www.studentaid.ed.gov.

Temporary Payment Reduction

This plan reduces your monthly payment during a short-term financial hardship. After this temporary period, your loan payments increase so you pay your loan off within the scheduled repayment period. This option does not bring your loan payments current and does not remove any delinquency.

Reduced Payment

This plan gives you smaller monthly payments, and more time to pay off your loan. The period of time you are making reduced payments is treated as an addition to the regular repayment term. At the end of the reduced payment period, your payment generally returns to the original amount. This is a good option if you need a temporary reduction in payments and do not want your payments to increase above the original scheduled amount.

Graduated Repayment

Your monthly payment amount begins with a reduced payment amount and periodically increases over the repayment period. If you choose this option, your payment amount will be reduced for up to 24 months; however, for the remainder of the term your payment will increase. This plan is well-suited for borrowers whose income starts low but will increase over time.

Income Sensitive Repayment

Your monthly payment amount is based on a percentage of your gross monthly income. You must renew this option annually. It can extend your total repayment period by up to five years. This plan is suited to borrowers who anticipate their income to be low initially, but expect it to increase over time.

Extended Repayment

This plan is available if you received your first federal loan on or after 10/07/98, and your accumulated loan balance exceeds $30,000. The maximum repayment term is 25 years. This option permanently reduces the required monthly payment amount, but results in higher finance charges over the life of the loan.

If you are having trouble making payments on your student loans, the Alaska Commission on Postsecondary Education (ACPE) may be able to help. ACPE offers repayment options tailored to your needs.

Don't wait until your account becomes delinquent or in default.If you are unable to make a payment, contact ACPE as soon as possible to discuss options that could adjust your repayment schedule and lower, or even postpone your monthly payments.

ACPE services both federal and state loans. Many of our customers have borrowed from each program to finance education expenses. It is important, when considering repayment options, to review your account and review the terms of loans you have borrowed.

Repayment Plans

When your loan goes into repayment, you are in the standard repayment plan. This plan offers the lowest finance charges over the life of the loan. Plans to lower your monthly payment may be available if you meet eligibility criteria. 

Deferment

Deferments allow you to temporarily postpone payment of loans for a qualified reason. The most common deferment reasons include returning to school at least half-time, and unemployment. Deferments are not automatic. You must apply and be approved for deferments. 

Forbearance

Forbearance is a temporary suspension of loan payments. Forbearance is an option that may be available to students in special circumstances, who are financially unable to make student loan payments, but are not eligible for a deferment. For example, forbearance may be available for students in a post-graduate training program or who experience severe financial difficulties.

Deferments allow you to temporarily postpone payment of a loan. You must apply and be approved for deferments. It is important to continue making monthly payments until you receive written notice the deferment has been approved.

If you place your loan or loans in deferment, interest accrues and, at the end of your deferment, capitalizes. If you defer payments for a significant amount of time this can substantially increase your loan balances. While this may increase your total repayment obligation, it is generally better then dealing with the potential consequences of delinquency and default.

Payments are not required during periods of deferment. However, ACPE strongly encourages borrowers to pay the monthly interest accrual to avoid increasing the total amount owed.

State Loan Programs

• Alaska Student Loan*
• Alaska Supplemental Education Loan
• A.W. "Winn" Brindle Memorial Education Loan
• Alaska Teacher Education Loan
• Guaranteed Student Loan

In-School

This deferment is intended to cover a repayment period when a borrower is enrolled at least half-time as a student. To qualify, the borrower must be considered a new borrower and have an outstanding balance on an ASEL. Medical interns and residents (except dental interns) cannot be certified as enrolled students for the purposes of in-school deferment eligibility, unless they are concurrently enrolled in a Ph.D. program.

Unemployment

If you are seeking but unable to obtain full-time employment in the United States, you may qualify for an Unemployment Deferment. This deferment has a 12 month maximum. You may use this deferment only once during the life of the loan. If you request the deferment for less than the 12-month maximum, you will forfeit the remaining months and any unused portion of the deferment period is nontransferable to any future period of unemployment.

Active Duty Military

If you are serving full-time active duty in the United States Armed Forces or Public Health Service Commissioned Corps you may be eligible to postpone repayment with a deferment.

Hardship

Deferment of payment available to borrowers who are having financial hardship and request temporary relief while experiencing one of the following situations: Natural Disaster, AmeriCorps, Personal Tragedy, Maternity, Seeking Employment outside of the US. A natural disaster is the effect of a natural hazard (e.g. flood, tornado, volcano eruption, earthquake, or landslide) that affects the environment, and leads to financial, environmental and/or human losses.

Volunteer Service

If you serving as a full-time volunteer for the Peace Corps or a Corporation for National & Community Service Program such as Action, Domestic Service, or VISTA you may be eligible to postpone repayment with a deferment. Volunteer service in the AmeriCorps program is a separate deferment category.

Internship/Residency/Graduate Fellowship

If you are serving in an internship/residency program required to begin professional service or practice, or servicing in a graduate fellowship program, you may be eligible to postpone repayment with a deferment.

Medical

You may be eligible for a medical deferment if you are 50% or more disabled, and unable to work or attend school, and borrowed loans before the 1996-97 school year; or if you are 100% disabled and unable to work or attend school and you borrowed loans for the 1996-97 school year or after.

* 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.

Federal Loan Programs

• Stafford Loan
• PLUS Loan
• FFELP Consolidation Loan

In-School

In school deferment allows temporary suspension of payments on eligible loans, while in school. In school status is defined as attending at least half time at an eligible institution. Once you graduate or drop below the half time enrollment requirement you will no longer qualify for this deferment. In school deferment is also available for Parent PLUS loans if the dependent student, on whose behalf the loan was taken out, is enrolled in an eligible institution attending at least half time. The PLUS loan must have first disbursed on or after 07/01/08.

Unemployment

Unemployment deferment allows a temporary suspension of payments on eligible loans, while unemployed or working less than 30 hours a week, or while working full time at a job that is not expected to last more than 90 consecutive days.

Economic Hardship

You must receive federal or state public assistance or earn less than a federal minimum wage or less than 150% of the poverty guideline for your family size and state to receive this deferment.

Graduate Fellowship

You must be engaged in a full-time graduate fellowship program that provides sufficient financial support to allow for full-time study for at least 6 months. You will be required to provide a statement of objectives, as well as periodic reports, projects or other evidence of progress.

Rehabilitation Training

You must receive or be scheduled to receive rehabilitation training services from a rehabilitation training program that is licensed, approved, certified or otherwise recognized to provide training for vocational rehabilitation, drug abuse treatment, mental health services or alcohol abuse treatment programs, or by the Department of Veterans Affairs.

PLUS Borrower with Dependent Student (for loans disbursed on or after July 1, 2008)

Parent PLUS borrowers may elect to have repayment of a PLUS loan postponed while the dependent student, on whose behalf the loan was taken out, is enrolled and attending at least half-time.

Military Service

You must be serving on active duty in the U.S. Armed forces (including National Guard duty) during a war or other military operation, or a national emergency Documentation with enlistment dates must be certified by a commanding officer. Your military service must have begun on or after 10/01/07, or include that date. You, or your representative, may be able to request this deferment for up to a year.

Post Active Duty

Effective Oct. 1, 2007, a FFELP borrower who is a member of the National Guard or other reserve component of the U.S. Armed forces (current or retired) and is called or ordered to active duty while enrolled at least half-time at an eligible school, or within six months of having been enrolled at least half-time, is eligible for a deferment during the 13 months following the conclusion of the active duty service, or until the borrower returns to enrolled student status on at least a half-time basis, whichever is earlier.

Federal Forgiveness

Some loans have forgiveness available if you meet specific criteria. Forgiveness requirements are often based on your field of employment. The following links are to help you determine if there may be forgiveness benefits available outside ACPE.

• Public Service Loan Forgiveness - https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
• Stafford Loan Forgiveness Program for Teachers - https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/teacher
• IBR - https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven

Other forgiveness

• SHARP - http://dhss.alaska.gov/dph/HealthPlanning/Pages/sharp/default.aspx
• DHSS/DPH other repayment options - http://dhss.alaska.gov/dph/HealthPlanning/Pages/sharp/SFSOptions.aspx

Forbearance is an option available to students who may not be eligible for a deferment. If you are financially unable to make your student loan payments, you may be eligible for temporary payment suspension. Forbearance will not eliminate any prior derogatory credit history.

If you choose to place your loan or loans in forbearance, interest will accrue, and at the end of your forbearance, it will capitalize.

Forbearing payments for a significant amount of time could substantially increase your loan balances. While this may increase your total repayment obligation, it is generally better then dealing with the potential consequences of delinquency and default.

Payments are not required during periods of forbearance. However, ACPE strongly encourages borrowers to pay the monthly interest accrual to avoid increasing the total amount owed.

Qualifying for Forbearance

The following circumstances may qualify a loan for forbearance:

• participation in an Internship/ Residency program
• participation in a national service position
• eligibility for loan forgiveness/student loan repayment programs
• less than half-time school enrollment
• poor health
• unemployment
• reduction in work hours
• life-changing circumstances

For more information on forbearance or to see if you qualify, contact ACPE.

Your student loan is considered delinquent when your monthly payment is not received by the due date. If your loan continues in a delinquent status, you may default on your loan. Delinquency and default are very serious, and the consequences can harm your credit and hinder your ability to borrow money for future purchases.

State Loan Programs

If your state education loan becomes 180 days past due, you are legally in default. Upon default, collection activities will commence.

Federal Loan Programs

If your federal education loan becomes more than 270 days past due, you are legally in default. However, you have several options for resolving the default, including paying your loan in full and loan consolidation.

Consequences of Delinquency and Default

Delinquency and default are serious – that is why we will do our best to help you keep your account current. Failure to repay your loan may result in, but is not limited to:

• Adverse reports to consumer reporting agencies
• Loss of loan deferment rights
• Garnishment of your Alaska Permanent Fund Dividend (PFD)
• Transfer to an external collection agency
• Additional costs to you for collection and accrued interest
• Administrative wage garnishment
• Lien on property

How to Avoid Delinquency and Default

We're here to help educate you on how to make sound financial decisions. Even if you are delinquent on your loan, you can still avoid default. Don't wait until it's too late; contact us early so we can help you choose an option that best fits your situation.

• Always read and respond to correspondence you receive from ACPE
• Carefully read the terms of your promissory note to know your obligations and options
• Keep good records – file important documents where you can locate them quickly
• Monitor your account balance, due date, and payment activity online
• Notify ACPE if you change your address or telephone number
• Contact ACPE if you can't make your scheduled monthly payment; there may be options available to help reduce or even postpone your payment

Automatic Online Payments

Set up recurring payments through your online account. Loan payments will be automatically withdrawn from your checking or savings account every month on the date you specify.

• Receive a 0.25% interest rate reduction
• Pay on time
• No more hassle of writing a monthly check

Don't have an online account? Enroll now!

One-time Online Payments

Schedule a single payment through your online account, to be deducted from your checking or savings account on the date you specify.

Telephone Payments

Make a payment through our Interactive Voice Response System 24 hours a day, 7 days a week, using your checking or savings account information or contact Customer Service during normal business hours.

Payments By Mail

Mail payments to ACPE's Juneau office. Be sure to include the loan account number with the payment.