Federal Student Aid - Financial Information (Student loans, grants, scholarships)

Introduction

The Alaska Commission on Postsecondary Education (ACPE), funded by the Alaska Student Loan Corporation (ASLC), provides loans (as well as grants and scholarships) to Alaska’s students and their families. Generally, there are Alaska alternative and Career-Specific loans available to student borrowers and Family Education Loans created for family members who want to help their children cover education expenses.

The following table (Table 1) demonstrates the number of state of Alaska loans that should be used as additional funding options when the federal financial aid is not sufficient for covering all costs.

Table 1.
State of Alaska Student Loan Programs

Source: The Alaska Commission on Postsecondary Education

The Alaska Commission on Postsecondary Education (ACPE), as a not-for-profit state higher education assistance agency, has a mission to provide affordable funding ways for students and make your costs as low as possible through  annual cost reductions. So, due to the fact that federal student aid can be insufficient, state alternative loans can be very appealing funding options.

Alaska Supplemental Education Loan (ASEL)

The ASEL is a low-cost loan product designed for students who have not covered all costs through federal education loans, grants and other types of aid. Students attending postsecondary institutions in Alaska, and qualified Alaska residents attending postsecondary institutions outside Alaska can apply. To qualify you must:

• Complete the FAFSA;
• Have a high school diploma;
• Be enrolled at minimum half-time in an eligible program;
• Have a FICO score of 680 or higher or a credit-worthy cosigner;
• Be an Alaska resident or be attending an eligible school in Alaska.

It’s important to note that unlike Direct Stafford and Federal Perkins loans dealing with need-based criteria, Alaska alternative loans are based on credit-worthiness meaning that a credit check will be done. Thus, a borrower must have a good credit score or a credit-worthy cosigner to get approved. Your cosigner must meet the 680 FICO score requirement.

FICO (developed by Fair Isaac Corporation) scores range from 300 to 850. 73% of the public have FICOs of 650 or better. The FICO score is based a consumer’s general history of incurring and repaying debt.

You can borrow up to $8,500 (undergraduate), $9,500 (graduate) and $6,500 (vocational) each year. You may not borrow more than your cost of attendance less other financial aid. There is also a 5 percent origination fee. The repayment begins after six months you graduated or dropped below half-time enrollment and the standard repayment period is ten years.

How to apply? You can apply online 24/7 at the Alaska Commission on Postsecondary Education (we provide you with the link in the References section).

Alaska Alternative Consolidation Loan

The loan allows you to combine all ACPE student loans into a single new fixed-rate loan. Typically consolidation makes it possible to have lower monthly payments but the total amount of money to be paid increases. To qualify you must:

• Have a minimum of $3,500 of eligible debt to consolidate
• Have a credit history that includes a FICO credit score of 680 or higher; or have made payments in full and on time for the 18 months preceding the consolidation loan application
• Not be more than 29 days delinquent on any loan and voluntarily made the majority of payments
• And other requirements.

To apply you need to download an application and submit it to ACPE (we provide you with the contact information in the end of the article).

Career-Specific Loans in Alaska

The Alaska Commission on Postsecondary Education also provides career-specific loans.

• Teacher Education Loan (TEL) was established in 1986 by Alaska Legislature to address the shortage of teachers in rural Alaska. The TEL provides low-cost loans to Alaskans nominated by rural school districts to pursue a degree in elementary or secondary education. There is also a forgiveness benefit to consider: teachers who are willing to work in rural areas may have their loans (principal plus interest) forgiven (in part or in full) by the State of Alaska. You can borrow up to $7,500 each year. The ACPE charges an origination fee (5 percent).
• Professional Student Exchange Loan (PSEL) is for students participating in the Professional Student Exchange Program (PSEP). Depending on the fields of study (pharmacy, dentistry, optometry and others) only certain borrowers are eligible.
• Winn Brindle Loan is created for students enrolled in a fisheries-related field. Borrowers may be eligible for forgiveness (up to half of their loan debt). You can apply online or submit a paper application.
• The Alaska WWAMI Program provides Alaska residents with medical education not available in-state. WWAMI is a collaborative medical school among universities in five northwestern states, Washington, Wyoming, Alaska, Montana, and Idaho and the University of Washington School of Medicine. Students complete their first year at the University of Alaska Anchorage. Then students from the WWAMI states can attend second-year courses at the University of Washington School of Medicine in Seattle.

Family Education Loan

The Alaska Family Education Loan is loan designed for families who want to cover education expenses of their child.  Depending on a degree type you can borrow from $6,500 to $9,500 each year. Both family members and students must satisfy the eligibility requirements.

Statistical Summary

Table 2.
Summary of Low-Cost Education Loan Borrowing (ASEL, FEL, and TEL Programs), 2011

Contact Information

Alaska Commission on Postsecondary Education: Payments
P.O. Box 110510
Juneau, AK 99811-0510
Juneau Office
3030 Vintage Boulevard
Juneau, AK 99801

Customer Service Call Center
call toll free 800-441-2962
or in Juneau 907-465-2962
907-465-5316 Fax
907-465-3143 TTY
Business Hours:
M-F 8:30am-4:30pm

References
The Alaska Commission on Postsecondary Education – Loans: Types, Eligibility, Applying Process

Additional Resources

1. Student Loans by State
2. Federal Loans for College Students