Student Loans in Alaska
Qualify for a Loan in Your State
The state of Alaska manages federal and state student loans through the Alaska Commission on Postsecondary Education. It also makes a number of alternative student loans available to qualifying students.
Alaska’s Supplemental Student Loan
Many state guaranty agencies, like the Alaska Commission on Postsecondary Education, have established their own brand of private alternative loans. Traditionally, college students have had federal loans and private loans available to them. It’s a well-known fact that federal loans typically do not measure up, and most students must seek alternative funding. Up until recently, most alternatives have been pricey private loans made through banks and other lenders and packaged to appeal to today’s college student. However, private student loans can be quite spendy. As an alternative, some states provide low-interest, long-term loans like the Alaska Supplemental Education Loan, through the AlaskAdvantage Program.
Eligibility Criteria
Students attending professional programs, four-year undergraduate, or graduate degree programs are all welcome to apply. These are credit-based loans, so you must submit to a credit check when you apply. If you do not qualify based on bad credit or no credit, you may secure a co-borrower or co-signor to help you qualify for the loan. Many students in this situation ask a parent, relative or close friend to be their co-borrower. This individual’s credit must be good and their debt-to-income ratio may not exceed a certain percentage.
Once you’re approved, you may borrow up to a maximum amount relative to your degree. For instance, you may borrow up to $42,500 for your four-year degree, or $8,500 a year.
Special Loan Programs
The Alaska Commission on Postsecondary Education also administers a couple of special loans targeted to students studying in particular subjects. In all cases, loan applicants must submit to a credit check:
- The A.W. Brindle Memorial Education Loan is designed for Alaska students pursuing a degree program that is “fisheries related.” This is a low-interest loan with a waiver attached to it for those students who comply with all the eligibility criteria.
- The next generation of criminologists or law enforcement personnel may apply for the Michael Murphy Memorial Education Loan, a very low-interest and competitive private loan program. However, students who meet all eligibility requirements may qualify for a full waiver of the loan.
- The Professional Student Exchange Loan Program is designed to make Alaska institutions more economically attractive to out-of-state students pursuing a number of “professional” programs. Students wishing to study at an Alaska college or university and who are enrolled in dental, occupational and physical therapy, pharmacy, and a number of other like programs, may be approved for a low-interest loan. While these out-of-state students go to school for in-state rates, the loan pays the balance of the tuition to the institution.
- The Alaska Teacher Education Loan is designed like many other state’s loan forgiveness programs. Students may borrow money on a low-interest loan, but may be eligible for a total forgiveness if they are willing to work in Alaska in a critical needs area. Applicants for the loan must be Alaska residents.
Consolidate Alaska Student Loans
In the past the ACPE has also offered the federal consolidation loan as part of its FFELP low cost student loans. However, in recent years the AlaskAdvantage Federal Consolidation Loan has been occasionally “suspended.” Check the ACPE website for availability.
You not only have options to consolidate your federal loans, but you may also apply for the AlaskAdvantage Alternative Consolidation Loan. When your multiple private loans become too unwieldy this loan may offer an amenable option. The Alternative Consolidation Loan packages customizable options into a fixed interest loan. This is a credit-based loan, as well, and you will have to agree to a credit check when you apply.
For more information on Alaska student loans, visit the Alaska Commission on Postsecondary Education .
