Interest Rate, APR, and Fees
The ASEL has a fixed interest rate of 7.30% (7.48% APR), for both in-school and repayment periods. This means the base interest rate of 7.30% is not subject to change; however, it may be reduced by Borrower Benefits. 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 APR reflects the interest rate without borrower benefit reductions. The ASEL’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 and 0.50% Alaska Presence
Credit Score Requirements
To qualify for the ASEL, you must have a FICO score of at least 680 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. Visit our Understanding Credit page to learn more about FICO scores, credit reports, and establishing good credit.
Accepting Your Award
Once your ASEL is approved, we will send you a loan application disclosure. 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.
After you accept your loan application disclosure, your ASEL funds will be sent directly to your school's financial aid office, in accordance with their scheduled financial aid disbursement dates.
Repayment begins six months after you stop attending school at least half time. 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. Learn more about repayment plans, payment methods, and repayment assistance.
OR download a paper application