Interest Rate, APR, and Fees
The TEL has a fixed interest rate of 7.30% (2.15% APR) in school and a 7.30% (7.30% APR) in repayment. This means the base interest rate of 7.30% is not subject to change; however, it may be reduced by Borrower Benefits while in repayment. 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 $8,500 and an origination fee of 5% for a freshman borrower scheduled for graduation in four years with repayment beginning after a six-month grace period. Learn more about APR. The interest rate and APR do not factor in any reductions due to borrower benefits. The TEL's 5% origination fee is taken out at the time of disbursement. View more loan cost examples.
About Borrower Benefits
Borrower Benefits are applied as quarterly or annual account credits or rate reductions to reduce the borrower-paid loan costs whenever the Alaska Student Loan Corporation (ASLC) has the capacity to do so. Benefits are variable, meaning that a new benefits package may be offered each program year. Borrowers who are delinquent or default on their loans may forfeit some or all benefits. For a complete list of benefits, see our borrower benefits chart.
► 2013-2014 Benefits: 0.25% Auto Pay
To qualify for the TEL, you must have a credit history that documents your ability and willingness to pay an extension of credit or have an eligible cosigner. Visit our Understanding Credit page to learn more about credit reports and establishing good credit.
Your TEL funds will be sent directly to your school's financial aid office, in accordance with their scheduled financial aid disbursement dates and procedures.
Repayment begins six months after you stop attending school at least half time. The standard repayment period is 15 years. Your monthly payment will be based on your total debt, subject to a minimum payment of $50.00 a month. Learn more about repayment plans, payment methods, and repayment assistance.
As a certified teacher in a qualifying rural* Alaska elementary or secondary school, you may be eligible for forgiveness of up to 100% of your total loan. In order to receive forgiveness, you must meet all TEL program conditions and have an outstanding balance on your loan. Loans that are paid-in-full before receiving any forgiveness benefits will not be eligible for forgiveness.
* "Rural" is defined as a community with a population of 5,500 or less that is not connected by road or rail to Anchorage or Fairbanks or with a population of 1,500 or less that is connected by road or rail to Anchorage or Fairbanks.