AFC College Lending

Practical Payment Choices

**Please Note**

Currently, the AFC website only deals with past and current holders of its loans and is not disbursing any new loans. According to their website: “Unfortunately, if you are in need of a new loan, AFC is temporarily unable to provide loans under the Federal Student Loan Program and is not accepting applications at this time.” They refer new borrowers to The following information has been retained for archival reference.


Academic Finance Corporation (AFC) works with schools and borrowers to fund education for undergraduate and graduate students. Although AFC encourages borrowers to first pursue scholarships and work-study programs, its primary focus is AFC student loans.

Loans Available

AFC provides federally funded, private loans or consolidation student loans. Federally funded AFC student loans include the Stafford subsidized and unsubsidized loans, the PLUS loan, and the GradPLUS loan. Applicants must annually complete the Free Application for Federal Student Aid (FAFSA). Loans are approved based upon the financial aid status of the student and his family. Interest rates on these loans may be as high as 8.5%. Students and parents may borrow up to the entire cost of the student’s education.

The Focus Consumer Education loan is a privately offered AFC student loan. Interest rates start as low as 7.37% annually financed over 20 years. Students must be at least 18, have their high school diploma or GED, and be enrolled in school on at least a half-time basis. Applicants must have employment and a good credit history, or a co-borrower with these qualifications.

Consolidation Loans Provide Peace of Mind

It isn’t uncommon for students to obtain a loan at the beginning of each year. Multiple loans usually mean multiple payments at varying interest rates. Consolidation loans allow the borrower to save money on interest, and on monthly payment amounts by lumping all the loans into one. AFC offers the Student Loan Consolidation Center to handle consolidating Federal student loans while maintaining the federal benefits. They also offer the Academic Development Loan, which consolidates up to $250,000 of your educational expenses.

Payment Options

AFC offers three payment options to borrowers: standard, graduated, and income sensitive repayment:

  • The standard repayment is financed over 10 years. Monthly payments must be more than $50, and the interest rate is fixed throughout the loan. Fail to choose a repayment plan and you will be automatically retrofitted with the Standard, or default.
  • The graduated repayment option starts with low monthly payments that incrementally increase as the loan matures, or as time goes on. Ideally, your income will increase just as your payments increase. With the graduated repayment option, your minimum payment is equal to any interest charged from month to month.
  • The income sensitive repayment plan is suited to borrowers with unreliable employment and income. Payments are directly related to how much you are earning. Whenever your income suffers fluctuations you are required to notify AFC so the plan may be adjusted accordingly. Borrowers must be diligent on this aspect in order to maintain their status with this repayment program. Although you are still required to pay any interest charged between months, your loan will not go into default because of income changes during your repayment period.

When borrowing money toward a brighter future, it helps to know that you have some options. Life brings ups and downs. AFC student loans prepare you with intelligent loan choices and practical repayment options you can live with. Visit their site.