Arkansas Student Loan Programs
Go Through Your Government Source
In conjunction with the State of Arkansas the Arkansas Student Loan Authority (ASLA) manages the Federal Family Education Loan Program as well as provides state students with its own alternative private loans. Secondary market providers like ASLA work hand in hand with state governments to assist state residents in securing the college funding they require.
About ASLA
The Arkansas Student Loan Authority is a non-profit loan agency contracted by the State of Arkansas. State residents may access affordable alternative loans that provide much-needed auxiliary funds for college. Federal funds such as the Stafford and PLUS loans provide non-credit loans, but fall frighteningly short of paying for the high price of a college tuition. In the past the only other alternative was taking out high-priced private loans from commercial banks and other for-profit lenders.
ASLA Alternative Loans
Only after Arkansas students have applied for federal student loans are they then free to explore the market of private alternative student loans. ASLA contracts with educational lender EdFinancial to bring Arkansas students custom-packaged low-interest, long-term alternative loans that can help eligible borrowers pay for a college tuition. These loans come in a number of options tailored to the specific needs of a range of college student. And because Edfinancial is a seasoned lender, the company may offer attractive benefits such as quick online loan approval and ultra-low interest rates:
- Edfinancial Private Loan for Undergraduate Students is available to undergraduates enrolled in an undergraduate degree-seeking program, including two and four-year programs. There is no maximum loan amount, but funds are approved based on the amount of tuition once federal loans have been applied. Student borrowers must have a good academic record.
- Edfinancial Private Loan for Graduate Students provides auxiliary loans to graduate students who are going to college half or full-time.
- Edfinancial Private Loan for Continuing Education Students offers a non-traditional loan option that makes it financially all right to go to school on a part-time basis. Borrowers may take out loans between $1,000 and $30,000.
Applying for Loans
Once you are in alternative loan territory, you are subject to lender requirements based on credit eligibility. If you have bad credit or no credit you may try and secure a co-borrower, or a co-signor. Traditionally co-borrowers are a parent, another relative or trusted friend. Whoever you choose, make sure they have decent credit and an acceptable debt-to-income ratio. This ratio relates to their income in contrast to the amount of debt they already carry. It does not have anything to do with their payments, but is an indicator of how financially strapped they are. If you are able to apply on your own, you will also be required to prove that you earn an income.
Repaying Loans
In many cases agencies like ASLA are able to negotiate terms of repayment for students that allow for affordable and manageable payments. Borrowers may choose from plans that allow students to defer principal payments and only make payments on the interest; pay both in tandem as soon as the loan is made to the college; or an option to defer both until after graduation.
Med students are eligible for even longer deferments due to their length of schooling and residency as well as extending length of repayment to 25 years.
Arkansas EdLoan: Loan Incentives for Special Professions
Besides the typical menu of FFELP loans and alternative loans, ASLA also manages the Arkansas EdLoan, a loan incentive program aimed at special professions, like teachers and nurses. Like many other states, Arkansas suffers from shortages of health care professionals, teachers and law enforcement personnel. EdLoan attempts to boost the numbers of these professionals who remain working and living in the state. The program basically offers students pursuing these fields a very low-interest student loan that may be waived if borrowers stay in Arkansas after graduation and work in areas of critical need.
