Loan Repayment

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’re facing financial difficulties, there are various repayment options for federal and alternative education loans to assist you.

Don’t wait until your account becomes deliquent. If you can’t make your scheduled payments, contact AES, ACPE’s trusted loan servicer, as soon as possible. They can help you with options to adjust your repayment schedule, lower your payments, or even postpone them. For more information, contact AES toll-free at 800-233-0557, available Monday to Friday from 3:30 a.m. to 5:00 p.m. AKST.

Deferments allow qualified applicants to postpone repayment of federal or alternative loans. You must apply and qualify for a deferment. Generally, interest accrues during a deferment period and may be added (capitalized) to the principal balance when your loan transitions to repayment. Review your promissory note for deferment option details.

Even though payments are not required during periods of deferment, making payments to cover the monthly interest accrued will save you money, lower your overall balance, and may even shorten your loan repayment term. For more information, contact AES toll-free at 800-233-0557, available Monday to Friday from 3:30 a.m. to 5:00 p.m. AKST.

Forbearances allow qualified applicants to postpone repayment of federal or alternative loans when deferment is not an option. Forbearance is a temporary, short-term option that may be available if you are experiencing financial difficulty. Generally, interest accrues during a forbearance period and may be added (capitalized) to the principal balance when your loan transitions to repayment.

Even though payments are not required during a forbearance, making payments to cover the monthly interest accrued will save you money, lower your overall balance, and may even shorten your loan repayment term. For more information, contact AES toll-free at 800-233-0557, available Monday to Friday from 3:30 a.m. to 5:00 p.m. AKST.

An education loan is delinquent when you fail to make your monthly payment by the due date. If the loan continues to be delinquent, you risk default. Delinquency and default are serious matters that can negatively impact your credit score, and hinder your ability to borrow money in the future.

Per the terms of your promissory note, if your alternative education loan becomes either 180 or 270 days past due, it will be considered legally in default. After default occurs, collection activities will begin.

Consequences of Default

Defaulting on your education loan has serious consequences. 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 AES if you’re having trouble making payments to help you choose an option that best fits your situation.

• Always read and respond to correspondence from your servicer
• Carefully read the terms of your promissory note
• Keep good records – file loan documents where you can locate them
• 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 can’t make your scheduled monthly payment; there may be options to help reduce or even postpone your payments