Grace Period

Your grace period is the amount of time you have before your first payment is due. 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.

 

State Loan Programs

• Alaska Student Loan *
• Alaska Supplemental Education Loan
• Family Education Loan
• Alaska Teacher Education Loan

* State education loans from program inception through the 2001-02 school year are identified as Alaska Student Loans (ASL). State education loans awarded after the 2002 school year are identified as Alaska Supplemental Education Loans (ASEL). It is important to note that terms and conditions associated with these loans vary.

 

Standard Repayment

A fixed monthly payment pays off the loan within a 10- or 15-year period, based on the year you received your loan and the type of loan you received. The standard repayment schedule will be established for you.

Extended Repayment

 ACPE will allow borrowers to extend their loans to a 15-year repayment term in certain circumstances.  The cost to repay the loan is higher if borrowers opt to extend their loans, but there are no penalties for paying loans off early.

Temporary Payment Reduction

Your monthly payment is reduced when you experience a short-term financial hardship. After this temporary period, your loan payments increase so you pay your loan off within the scheduled repayment period.

Auto-Pay Discount

You may be eligible to receive a 0.25% interest rate reduction on your loan by having qualifying loan payments deducted from a checking or savings account during the in-school, grace, and repayment period.

To qualify, your payments must meet the following conditions:

• In-school/Grace/Deferment/Forbearance Period - Payments made during the in-school, grace, 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.

How to Repay State Education Loans

Responsible repayment of your student loans is an essential part of building a solid financial future. You can successfully repay your state education loans by following these four simple steps:

1. Manage your account online.
   Accessing your online account is a secure and convenient way to review your loan balances and due dates, to schedule payments and view monthly statements, and much more. This is a great way to track and update your account 24 hours a day!
2. Understand your repayment obligation.
   
   You will receive a letter approximately 45 days before repayment is scheduled to begin that will provide your repayment terms. This repayment disclosure will include the following information:
   • The monthly payment amount, due date, and number of payments
   • The balance you owe on your loan
   • Information about rates, fees, and finance charges
   
   Approximately three weeks before your first payment is due, you will be provide with a monthly billing statement.


3. Make your payments on time.
   
   Pay your student loans on time, all the time. If you think you have missed a payment, or you might need to make a late payment, be sure you know how delinquency and default will impact you. Remember that delinquency has serious consequences.
    
4. Contact your servicer if you are not able to pay the amount due.
   
   If you are having trouble making your payments, there are a variety of repayment options that may meet your needs. As your life circumstances change, these options allow you to change the way you pay back your loans. These can be especially helpful if you are faced with unemployment, or a health or financial crisis.

 

 

Federal Loan Programs

As of 4/1/2020, ACPE has transferred the servicing of all Federal Loan Programs to American Education Services (AES).

Please contact AES for repayment information on your Federal Loans

Phone Number: Customer Service: 800-233-0557
Monday – Friday, 7:30 a.m. to 9:00 p.m. EST
(3:30 a.m. to 5:00 p.m. AKST)

Website: aesSuccess.org  

 

Repayment Assistance

If you are having trouble making payments on your student loans, your servicer may be able to help. Whether you have federal or state loans, there are a variety of repayment options available to assist you during financial difficulties.

Don't wait until your account becomes delinquent or in default. If you are unable to make a payment, contact your servicer as soon as possible to discuss options that could adjust your repayment schedule and lower, or even postpone your monthly payments.

 

Deferments

Deferments allow you to temporarily postpone payment of a loan. You must apply and be approved for deferments. It is important to continue making monthly payments until you receive written notice the deferment has been approved.

If you place your loan or loans in deferment, interest continues to accrue, and may be capitalized at the end of the deferment period.

Payments are not required during periods of deferment. However, ACPE strongly encourages borrowers to pay the monthly interest accrual to avoid increasing the total amount owed.

 

Forbearance

Forbearance is an option available to students who may not be eligible for a deferment. If you are financially unable to make your student loan payments, you may be eligible for temporary payment suspension. Forbearance will not eliminate any prior derogatory credit history.

If you choose to place your loan or loans in forbearance, interest will accrue, and at the end of your forbearance, it will capitalize.

Forbearing payments for a significant amount of time could substantially increase your loan balances. While this may increase your total repayment obligation, it is generally better then dealing with the potential consequences of delinquency and default.

Payments are not required during periods of forbearance. However, ACPE strongly encourages borrowers to pay the monthly interest accrual to avoid increasing the total amount owed.

 

Qualifying for Forbearance

The following circumstances may qualify a loan for forbearance:
 

• participation in an Internship/Residency program
• participation in a national service position
• eligibility for loan forgiveness/student loan repayment programs
• less than half-time school enrollment
• poor health
• unemployment
• reduction in work hours
• life-changing circumstances

 

Forgiveness

Some loans have forgiveness available if you meet specific criteria. Forgiveness requirements are often based on your field of employment. The following links are to help you determine if there may be forgiveness benefits available outside ACPE.

• SHARP - http://dhss.alaska.gov/dph/HealthPlanning/Pages/sharp/default.aspx
• DHSS/DPH other repayment options - http://dhss.alaska.gov/dph/HealthPlanning/Pages/sharp/SFSOptions.aspx

 

Delinquency & Default

Your student loan is considered delinquent when your monthly payment is not received by the due date. If your loan continues in a delinquent status, you may default on your loan. Delinquency and default are very serious, and the consequences can harm your credit and hinder your ability to borrow money for future purchases.

 

State Loan Programs

If your state education loan becomes seriously delinquent and becomes either 180 or 270 days past due (depending on loan program), you are legally in default. Upon default, collection activities will commence.

 

Consequences of Delinquency and Default

Delinquency and default are serious – that is why we will do our best to help you keep your account current. 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 your servicer early so they can help you choose an option that best fits your situation.

• Always read and respond to correspondence you receive from your servicer
• Carefully read the terms of your promissory note to know your obligations and options
• Keep good records – file important documents where you can locate them quickly
• 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 are unable to make your scheduled monthly payment; there may be options available to help reduce or even postpone your payment