X

Loan Repayment

Whether you’re entering repayment, needing assistance, or you want to jump start making payments while you’re still in school, it’s important to understand the type of loan you have and the options available.

ACPE has partnered with American Education Services (AES) to service its federal and alternative education loans. Many ACPE customers have borrowed from each program to finance their education. Therefore, it’s important when considering repayment options, you review the terms of the loans you have borrowed.

  • Plan in advance to keep the cost of repaying loans low
  • Carefully read the terms of your promissory note to know your repayment obligations and options
  • Choose the right repayment option for your situation
  • Choose a payment method that makes it easy to manage your monthly payments.
  • Contact your lender immediately if you have difficulty making payments.

Grace Period

For most federal and alternative education loan programs, after you graduate, leave school, or drop below a half-time enrollment, you have a one-time, six-month grace period before you must begin making payments. Interest continues to accrue on the outstanding principal balance during the grace period and will be added (capitalized) at the end of this period.

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.

 

If you are having trouble making payments on your education loans, your servicer may be able to help. Whether you have federal or alternative education loans, there are a variety of repayment options available to assist you during financial difficulties.

Don't wait until your account becomes delinquent or in default. If you are unable to make a payment, contact AES, ACPE's trusted loan servicer, as soon as possible to discuss options to adjust your repayment schedule and lower, or even postpone your monthly payments. For more information contact AES toll free 800-233-0557, M-F 3:30 a.m. to 5:00 p.m. AKST.

 

Deferments allow qualified applicants to temporarily postpone repayment of federal or alternative loans. You must apply and qualify for a deferments unless you are enrolled in school at least half-time. In most cases, interest continues to accrue during a deferment period, and may be added (capitalized) at the end of the deferment period. Review your promissory note for details about deferment options.

Payments are not required during periods of deferment; However, making payments to cover the monthly interest accrual will save you money, lower your overall balance, and may even shorten your loan repayment term. For more information contact AES toll free 800-233-0557, M-F 3:30 a.m. to 5:00 p.m. AKST.

 

Forbearance is an option available to qualified borrowers to temporarily suspend payments. This option may be available to borrowers for special circumstances, who are financially unable to make student loan payments, but are not be eligible for a deferment. Forbearance is not a long-term solution and should only be considered as a last resort to avoid default. If you are experiencing short-term financial difficulties and you do not qualify for deferment, a forbearance may be available. In most cases, interest continues to accrue during a forbearance and may be added (capitalized) at the end of the forbearance period.

Payments are not required during periods of deferment; however, making payments to cover the monthly interest accrual will save you money, lower your overall balance, and may even shorten your loan repayment term. For more information contact AES toll free 800-233-0557, M-F 3:30 a.m. to 5:00 p.m. AKST.

 

Your education 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.

 

If your alternative education loan becomes either 180 or 270 days past due (depending on loan program), you are legally in default. Upon default, collection activities will commence.

 

Consequences of Default

Defaulting on your education loan has serious consequences – 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 your servicer if you’re having trouble making payments so they can help you choose an option that best fits your situation.

  • Always read and respond to correspondence you receive from your servicer
  • 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 your servicer if you change your address, email, or telephone number
  • Contact your servicer if you are unable to make your scheduled monthly payment; there may be options available to help reduce or even postpone your payment

 

 

Need assistance?

Contact AES, ACPE’s trusted loan servicer

Call toll free 800-233-0557
M-F 3:30 a.m. to 5:00 p.m. AKST
aesSuccess.org