Alaska Supplemental Education Loans

Alaska’s Personalized Education Loan Program (PEL) was enacted by the Alaska State legislature in 2004 and provides students attending private or public colleges and universities who have demonstrated financial need with funding assistance for their educational costs. PEL funds may be used toward tuition, fees, books, supplies, equipment, room and board, personal care items, or any other educational cost incurred at a publicly or privately operated post-secondary institution.

What does this mean? The student receives a state-issued I.D. card and a monthly allowance based on the number of units they complete per semester. Students receive a maximum of $500.00 per month, regardless of whether they attend school full time or not. When their annual state income reaches $14,000.00, the student will no longer qualify for the program.

How do I get started? Information about the application process and the eligibility requirements can be found there. Applicants must provide proof of an income tax return reflecting gross earnings for the previous two years. Each applicant will receive a letter detailing the status of his or her application. If approved, the state will issue the student an official ID card and begin sending monthly checks to the address provided in the application.

Are there limitations on how much money I can receive? There are no restrictions on how much funding a student can receive each year. However, the total funds received cannot exceed the amount of financial aid previously awarded by the university. Additionally, there is a cap on the number of credits that can be taken each semester.

Is a Pell Grant available? Students who meet certain criteria may be eligible for a Federal Pell Grant.

Alaska Supplemental Education Loans

The Alaska loan is not a federal program. In addition, while these loans may be offered at some community colleges, they must be considered on a case-by-case basis. Loans do require repayment and are subject to the terms and conditions laid out by each institution.

Alaska Supplemental Education Loans

Alaska Supplemental Education Loans (ASEL) were created in 2000 to allow students who attend full-time postsecondary educational programs in Alaska to receive education loans at low interest rates. In 2014, the program was renamed the Alaska Permanent Fund Dividend Loan Program.

ASEL loan applicants must have attended school in Alaska for four consecutive years before enrolling in their current educational program. A student may apply for two different types of ASEL loans based on their enrollment status. After completing their first year of college, they may qualify for a Direct Unsubsidized Loan if they have not yet graduated. If they graduate prior to having completed a full academic year of study, they may qualify for an interest-subsidized loan. Students may use both types of loans, although they cannot borrow money from both simultaneously.

ASEL loans are awarded automatically after a student completes their first year of education. However, the amount borrowed varies depending on several factors, including the type of loan sought, the level of financial need, credit history, and family assets.

Undergraduate students who plan to work as well as pursue higher education may opt instead to take out the maximum allowed amount under the Parent PLUS loan program. Those who choose to do so must repay the entire amount over the course of ten years, plus a five percent annual interest rate.These payments start immediately upon graduation.

The maximum amount of an undergraduate student’s combined Alaska ASEL and parent PLUS loan is $20,000 per school year. This limit does not apply to those pursuing graduate studies, since they are only eligible for interest-free federal student loans. However, parents often choose to consolidate these loans into separate federal PLUS loans to increase the total borrowing capacity.

While borrowers must pay back their loans regardless of whether or not they make regular monthly payments, they will face severe consequences if they default. Borrowers who don’t begin making payments on time could find themselves facing garnishment of wages, tax liens, wage garnishments, and even home foreclosure.

To prevent this from happening, borrowers should keep track of all payments and contact their lenders promptly if they fall behind.

Interest accrues daily and is compounded monthly. All outstanding balances become due on Dec. 1 of each year. Since borrowers don’t have to worry about paying back any money until then, they can continue to live without worrying about how much repayment will cost them.

Interest rates vary depending on the borrower’s circumstances. Student borrowers generally receive lower rates than borrowers who own homes and cars. Undergraduates are charged 5.25 percent for unsubsidized loans and 6.84 percent for subsidized loans.Graduate students are charged an interest-only loan fee of 8.5 percent and a principal and interest loan fee of 9.74%.Parents who take out PLUS loans are charged an annual percentage rate of 4.21%.

In addition to interest, borrowers are subject to three late payment fees and a grace period penalty.

There is no minimum repayment term for either undergraduate or graduate students. However, those receiving interest-only loans must repay the principal within six months after the end of the grace period. Graduates with a federal Stafford loan must begin repaying the principal within 30 days of starting classes after the grace period ends.

Borrowers must meet income eligibility requirements in order to benefit from this program. A household’s adjusted gross income must be less than $50,250 for homeowners and $55,500 for renters. Any excess earnings go toward reducing the size of the state’s permanent fund dividend.

Because of its unique nature, the Alaska Permanent Fund Diversion Loan Program is exempt from many federal regulations. Consequently, borrowers are able to obtain a variety of financing options that would otherwise be unavailable to them.

Borrowers applying for the program should review their individual financial situations carefully. They should also consider other programs like the Federal Perkins Loan and the Teacher Education Assistance for College and Higher Education (TEACH) Grant.

Alaska Supplemental Education Loans

We have been able to build Alaska Support System at our own cost over the past year, and we’ve had some help from our large group of donors. Now we need our individual donors to help us fund this program if we are going to continue to receive funding from our state and local governments. We also need your donations beyond what we already have since we want to make sure we are ready for the upcoming school year. We’re talking about thousands of dollars in equipment for each public school teacher. All donations are processed online! Become a donor today!

Supplemental Education Loan in Alaska

SUMMER 2013-ALASKA SCHOOLS NEED YOUR SUPPORT!

The mission of the Alaska School Board Association is to represent and serve its member schools across the state of Alaska; to enhance educational opportunities for students; to advance public awareness and involvement in ASBA activities; and to contribute to the improvement of education throughout the state of Alaska.

About the Association:

Alaska Schools Supporting Students (ASSS) is a non-profit organization dedicated to providing financial assistance to Alaska students attending private elementary schools who would not otherwise be able to afford their tuition. Our goal is to provide a free opportunity for low-income children to attend high-quality schools.

The mission of the association is to represent and serve the private schools in Alaska; to encourage and assist them in accomplishing their goals and objectives; to promote harmony among the schools, parents, and the community; and to aid and benefit the student body of the private schools.

Our focus is on supporting the private schools that educate our children. Private schools are often underfunded, and many of these schools close down if they cannot find adequate funding. In order to keep a school open, much of the money raised goes directly back to the students and teachers. Oftentimes, the same families send their children to different private schools each year. Therefore, the funds raised in one school year may not be enough to cover the entire cost for the following school year.

Alaska Supplemental Education Loans

This video was created exclusively for Alaska students and provides details on the Alaska Student Loan Program (ASLP). The program provides financial assistance to Alaska residents who are pursuing postsecondary education opportunities within the state of Alaska. Students may use these funds to pay for tuition, fees, books, supplies, equipment, room and board, transportation expenses related to educational programs, and other approved educational expenses while enrolled at least half-time in an eligible academic institution located in the state.

In addition to the ASLP, there are many other federal student loan programs that encourage funding, including the Federal Perkins Loans, Federal Stafford Loans, Federal PLUS Loans (including the Parent PLUS Loan), Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Consolidation Loans.

To be considered for the Alaska Student Loan Program, students must attend an eligible school located in the state of Alaska. To be considered for most loan types, students must attend an accredited two-year or four-year college, trade school, graduate school, or vocational/technical training program. In order to receive the maximum benefit under any type of loan, students should complete their course work at full time attendance status. The following links provide additional information about the Alaska Student Loan Program:

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