Alaska Supplemental
Education Loan (ASEL)

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
4. Accept the terms set out in your loan disclosure
5. You're done!

Eligibility

• Be an Alaska resident, or attend an eligible Alaska school
• Have a FICO credit score of at least 650 and absence of adverse credit, or apply with an eligible cosigner
• Be enrolled at least half-time
• Meet all other requirements under AS 14.43.172 and 20 AAC 15.705

Accepting Your Award

Once your ASEL is approved, we will send you a loan approval disclosure (LAD). You must accept the disclosure before the funds can be disbursed to your school. The quickest way to review the disclosure and accept your loan is to complete the process electronically through your online account.

Disbursement

After you accept your loan approval disclosure (LAD), your ASEL funds will be sent directly to your school's financial aid office, in accordance with their scheduled financial aid disbursement dates.

Loan Limits

Program	Annual	Aggregate
Undergraduate	On-time enrollment - up to $14,000 Full-time enrollment - up to $12,500 Half-time enrollment - up to $7,500	$56,000
Graduate	Full-time enrollment - up to $15,000 Half-time enrollment - up to $7,500	$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: Aggregate maximums include loans paid-in-full and loans from the Alaska Supplemental Loan Program, Memorial Education Loan Programs and the Teacher Education Loan Program.
 

Interest Rate, APR, and Fees

The ASEL has a fixed interest rate for both in-school and repayment periods. This means the base interest rate is not subject to change; however, it may be reduced by discounts such as the online Auto-Pay discount. Your interest rate is dependent on your credit score and may be from 5.40% to 8.50% (not considering rate discounts). You will be notified of the interest rate you qualify for during the application process. 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.

 

Fees

There are no origination or prepayment fees on the ASEL.

 

Rate Discounts

► 2018-2019 Rate Discounts: 0.25% Auto-Pay and 0.50% In-State (Alaska) School

Interest rate discounts are available to borrowers who use their loan to study in Alaska, and to borrowers who enroll in automatic online payments. Rate discounts are built in for the life of the loan as long as conditions are met. Borrowers who are delinquent or default on their loans may forfeit the online Auto-Pay discount.

Alaska School Discount: A reduced interest rate available only to borrowers who use their loan to study at an Alaska institution, and built in for the life of the loan.

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, grace, and repayment periods. The reduction will remain in effect as long as qualifying automatic payments continue without interruption.

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

• In-school/Grace/Deferment/Forbearance Period - 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.

 

 

Credit Requirements

To qualify for the ASEL, you must have a FICO score of at least 650 or an eligible cosigner. The online application process gives you the opportunity to send an instant request to a potential cosigner if you don't have the required FICO score. A higher credit score may lead to a lower rate. Learn more: acpe.alaska.gov/myrate.

Visit our Understanding Credit page to learn more about FICO scores, credit reports, and establishing good credit.

 

Consider a Cosigner

Borrowers who have little or no credit history may have difficulty qualifying for a student loan. ACPE encourages borrowers who do not meet the credit requirements to consider a qualified cosigner for their student loan.

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 student 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.

 

Repayment

Repayment begins Repayment begins six months after you drop below a half-time enrollment status, withdraw from school or graduate, whichever is sooner. The standard repayment period is ten years. Your monthly payment will be based on your total debt, 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 no payment is due, such as in school or in grace
• Choose a repayment plan and payment method that's right for your situation
  Learn more about repayment plans, payment methods, and repayment assistanc

 

Career Training

Alaska education loans can be used at career training institutions in Alaska that are not covered by federal loans. Click here to view where you can use the Alaska Supplemental Education Loan (ASEL) or Family Education Loan (FEL).

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

Non-residents who attend a participating school physically located in Alaska are eligible for the In-State Alaska Student Loan.