Program Info | Benefits/Interest Rate | Eligibility | Application | FAFSA | Repayment
Consolidation | Tax-Related | Avoiding Default
What exactly is AlaskAdvantage?
AlaskAdvantage is a collection of federal and state educational aid programs offered to students by ACPE. They offer the lowest-cost assistance for Alaska residents and students attending Alaska schools.
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What is the AlaskAdvantage federal lender code?
Our federal lender ID is 826966.
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What is the interest rate on AlaskAdvantage loans?
Interest rates are set each July, based on the federal Title IV rates. Interest accrues from the time of disbursement, but payments on loans to students are not due until six months after you cease attending school at least half-time in a qualifying school. See our Quick Comparison Chart.
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How do I get the reduced-cost benefits of having ACPE as my lender?
All you need to do is make sure your financial aid comes from the AlaskAdvantage programs - we'll do the rest. Just tell your school that you want to borrow from the AlaskAdvantage Programs, federal lender #826966.
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Do I need to go to school in Alaska?
No. If you are currently an Alaska resident, you can benefit from the AlaskAdvantage loan program if attending a participating school outside of Alaska, as long as you maintain your Alaska residency. However, you may qualify for expanded borrower benefits if you attend a school in Alaska, or if you reside in Alaska after you complete school.
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Do I need to be an Alaska resident?
No. You do not need to be an Alaska resident as long as you are attending a participating school physically located in Alaska. If you plan to attend a non-Alaska school and use the AlaskAdvantage loan program, you must be an Alaska resident.
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What if I don’t have a credit history?
No credit check is required for the AlaskAdvantage Stafford loan. A credit check is required for the Alaska Supplemental Education Loan (ASEL). However, not having a credit history is not the same as a negative credit history and does not disqualify you. Even if recovering from credit problems, you are still eligible for some loan programs. If you have a negative credit history, you may apply for the ASEL with a credit-worthy cosigner.
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What if I already have a Stafford loan with another lender?
You will want to specify ACPE as your new lender, federal ID# 826966. Your school will require that you sign a new Master Promissory Note. Once you enter repayment, you may want to consolidate your loans with a single lender. Check with ACPE for information on our Consolidation Loan program.
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What if my school isn't eligible for Title IV or federal loans?
If attending a non-Title IV school located in Alaska, you may still be able to borrow from the Alaska Supplemental Education Loan program provided you and your school meet the eligibility criteria.
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What happens if my Student Aid Report (SAR) indicates that I am not eligible for federal aid (drug conviction, not registered for Selective Service, etc.)?
You may still be eligible for the Alaska Supplemental Education Loan, depending on the reason you are not eligible for federal aid. Please contact us or your school’s financial aid office to discuss your particular situation.
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How much can I borrow?
You may borrow up to your costs of attendance as certified by your school for tuition, fees, living expenses, books and supplies, transportation, and certain other approved costs, up to the annual limit for your grade level. However, always borrow the lowest amount you need, to minimize your debt. Click here to find the annual and lifetime dollar limits.
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How early do I need to apply for AlaskAdvantage loans?
You should apply as soon after January 1st as possible. ACPE recommends that you apply at least six weeks before you require the money be delivered to your school, but talk to your financial aid office to see what options are available to you. With approval from your school, we will process your application even if it comes in after your school term begins, as long as the academic year has not ended.
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How do I let the Financial Aid Office know that I want ACPE to be my lender?
You should identify ACPE AlaskAdvantage Programs as your lender of choice when completing financial aid paperwork at your school, and you must enter our lender code in the upper right hand corner of your master promissory note (MPN). Our federal lender ID is 826966.
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What is the process for getting an Alaska Supplemental Educational Loan?
You apply for the Alaska Supplemental Education Loan (ASEL) by completing the FAFSA and an ASEL Master Promissory Note with ACPE. In order to keep your borrowing costs as low as possible, you should always apply for the AlaskAdvantage Stafford Loan before you apply for the Alaska Supplemental Education Loan. In some cases, your school may allow you to apply for the ASEL without completing the FAFSA, but we strongly recommend (again!) that you complete the FAFSA to get the best possible financial aid package. To complete the ASEL Master Promissory Note, you have the following options:
In some cases, your school may send you an ASEL MPN along with your other financial aid materials.
You may complete an online application (link to ASLNet).
You may print out a copy of the application/PN (link to PDF).
You may request a paper application from ACPE customer service.
Once you complete the application, submit it online, or, if in paper form, to ACPE Loan Servicing, PO Box 110505, Juneau, AK 99811-0505. You should receive award notification in the mail within two weeks.
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What is E-sign?
E-sign is an electronic signature process that is used for a variety of financial aid documents. It allows you to complete and submit your application entirely online. The e-sign portion carries the same legal weight as an ink signature and is legally binding. By processing online, you can eliminate delays inherent in using the postal system to deliver documents.
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What is an MPN and how does it work?
A Master Promissory Note (MPN) is the contract between you and the lender. By signing it you agree to the terms and conditions under which you are borrowing, including the repayment timeframe. Signing the MPN is your last step for applying for a loan. Usually, your school’s financial aid office will send you an MPN when they notify you of your financial aid eligibility.
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What is a co-signer?
A co-signer is someone who, along with the primary borrower, accepts responsibility for repaying a debt.
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What is the FAFSA?
The FAFSA is a form that must be filled out by every student seeking federal financial aid, including grants and loans, to attend any school in the nation. You can get the form at FAFSA online, from your high school or from any college or university.
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What information will I need to complete the FAFSA?
You will need your tax information, and your parents’ tax information if you are a dependent student. You can avoid delay in submitting your FAFSA by using estimated information; however, you will be required to provide actual information once you file your taxes. Please note that the update could alter your financial aid award amount.
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What if I don't have a social security number or don't want to report it on the need analysis form?
You must enter your social security number on the FAFSA form. If you don't submit your social security number, the form will be returned unprocessed and you will not be considered for federal student aid. Additionally, at least one parent social security number along with name and date of birth must also be supplied on the form.
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What are the benefits of the online FAFSA application?
There are several. Completing the FAFSA online allows you to start an application, save it, and return to it at a later time. The online application allows you to use an electronic signature. If parents and students are not residing in the same location, or if parents want to safeguard the privacy of their financial information, the student can complete their portion of the FAFSA and sign it with their electronic signature. The parent can then open the saved application, add their financial data, and sign it with their distinct electronic signature. Once submitted, your electronic FAFSA is processed in half the time.
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My parents make too much money and I know I can’t get a Pell grant. Should I bother with the FAFSA?
Yes! Don’t forget that the FAFSA is used for all federal student financial aid programs. This includes the low-cost unsubsidized Stafford loan, which is not tied to your family’s financial status. Everyone who completes the FAFSA can qualify for these funds, regardless of financial need. In addition, many schools offer state or school-based grant programs, school or private work-study programs and scholarship opportunities. The FAFSA is the recognized standard for consideration for these opportunities and is being adopted as the single application for many alternative loan products.
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What if my parents will not provide their tax information?
Because AlaskAdvantage is a new program, your parents may not be aware of the savings available. Be sure to let them know their cooperation will ensure you receive educational benefits for which you qualify. If they are reluctant due to privacy issues, consider filing the FAFSA online and explain the benefits. If they still will not provide the required information, contact your school’s financial aid office or our customer service representatives. There are AlaskAdvantage options available for students who are not able to complete the FAFSA.
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The FAFSA asks for last year’s tax information. What if my family will make significantly less this year?
Contact your school’s financial aid office. They may have some options to help you.
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My parents are separated/divorced. Whose financial information do I use?
For a married but separated couple, you need to provide financial information on both parents. If your parents are divorced, you should use information from the parent who generally supports you. If that parent is remarried, you are required to include the stepparent’s financial information.
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My SAR shows that our family’s Estimated Family Contribution (EFC) is very high. Did we make an error on the FAFSA?
Perhaps not. Remember you or your family members can borrow education loans as a way of paying your family’s EFC. However, if you want to check your figures, you can visit www.nela.net and use their EFC calculator to get a ballpark figure and compare it to your SAR.
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I live on my own. Do I still require my parents’ financial information?
If you are a dependent student, you will need your parents’ financial information on the FAFSA. Even though you may be living independently of your parents, for the purposes of the FAFSA, you are considered to be an independent student only if any of the following are true: You
- Will be at least 24 years old by December 31st of the school year
- Are a graduate or professional student
- Are married
- Have legal dependents
- Are orphaned
- Are a veteran of the U.S. Armed Forces
- Are determined to be independent by your school’s financial aid administrator
If you believe you have extenuating circumstances that should afford you status as an independent student, please contact your school’s financial aid office.
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If I borrow from both the federal and state loan programs will I have to pay two bills?
No, not if you use ACPE as your federal lender. As long as all of your state and federal loans are part of the AlaskAdvantage programs, you will receive one monthly statement for all of your loans.
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Can I defer payments while in school?
Yes. Deferments on loans to students are automatic for the entire time you remain in school on at least a half-time basis. A variety of deferments are also available if you experience certain hardships while in repayment. One of the greatest benefits of the AlaskAdvantage programs is flexibility; that is, greater options are available to respond to a change in a borrower’s situation, whether in school or experiencing financial hardship.
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How does consolidation work?
You take out a new loan that pays off the underlying loans, so you have just one loan with a single, fixed interest rate.
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What will my interest be?
For federal consolidation loans, the interest rate is based on the weighted average rates of the loans you consolidate, rounded up to the nearest 1/8th percent. You can obtain information about the current rate on your federal loans by accessing the National Student Loan Data System (NSLDS). It's fixed for the life of the loan, which means that it cannot increase, even if other loan rates go up. Recent federal consolidation loan program changes have resulted in the suspension of this specific AlaskAdvantage loan option effective May 1, 2008.
For alternative consolidation loans, the interest rate is also a fixed rate of interest which corresponds to the program year in which the application is received. The interest rate is set annually for each new program year, July 1 through June 30. The interest rate for the upcoming program year will be announced no later than June 30. See our Alternative Consolidation page for current year rate. For qualifying borrowers, the rate may be reduced by AlaskAdvantage benefits. For more information, please call us at 800-441-2962 or email us at customer_service@acpe.state.ak.us.Back to Top
What options do I have if I want to get a federal consolidation loan during the period that ACPE has suspended participation in this program?
Several options are available. They include:
1. Consolidate with another federal lender.
2. Consolidate with the Federal Direct Loan program.
3. Consolidate your non-AlaskAdvantage loans with another lender or with Direct Loans, but withhold your AlaskAdvantage loans in order to retain the borrower benefits on those loans.
Borrowers with AlaskAdvantage federal loans should examine their borrower benefits, which will be lost if they consolidate with another lender, and carefully determine which action is in their best interest. For assistance in examining your options, call ACPE at 800-441-2962 (465-2962 in Juneau).Back to Top
Can I consolidate my Alaska Student Loans with federal loans?
Federal and state laws do not allow us to consolidate your Alaska state education loans with federally-guaranteed loans. However, if you determine it is in your best interest to keep your federal loans unconsolidated at ACPE, we can provide you with a single bill, and you will have just one contact and one payment for all your loans, both federal and state.
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Do you offer spousal consolidation loans?
No, ACPE does not allow spouses to consolidate their loans into a jointly-held loan.
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Do I need to pass a credit check?
Yes, Alternative Consolidation Loans will require a credit check.
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Are there advantages to the AlaskAdvantage Consolidation Loans?
Yes. No origination fee is charged and borrowers eligible for the AlaskAdvantage benefits can enjoy significant savings over the life of the loan.
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What if I defaulted on the loans I want to consolidate?
There are still options available for consolidation. Give us a call at 800-441-2962 and we'll tell you about them.
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I received a 1098-E in the mail. What is it?
A 1098-E Statement of Student Loan Interest notes the amount of interest you paid on your loan during the past year. You may be eligible for an income adjustment on your federal taxes as a result of interest that you paid on your student loan. For more information, please contact your tax advisor or refer to IRS Publication 970, Tax Benefits for Education.
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I received a 1099-C in the mail. What is it?
Permanent disability, death, or other circumstances may result in a student loan lender writing off all or a portion of a borrower's debt. If the amount written off is greater than $600, the federal government requires the lender to file a 1099-C, Cancellation of Debt. The total written off may be taxable. For more information, contact your tax advisor or refer to IRS Publication 525, Taxable and Nontaxable Income.
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I did not receive my student loan tax forms. How can I get them?
Appropriate tax documents are mailed automatically to the address listed in our records. If you are in repayment and paid interest on your loan last year, or had at least $600 of your balance written off, you should have received your forms by mail. If you did not, please contact customer service at (800) 441-2962 for copies and to update your contact information if necessary.
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My school did not send a Form 1098-T to me. What should I do?
You should first find out if your school is required to furnish a 1098-T. The Internal Revenue Service (IRS) requires eligible institutions to furnish a 1098-T, Tuition Statement, to each student. The IRS defines an eligible educational institution as a college, university, vocational school, or other post-secondary educational institution that is described in section 481 of the Higher Education Act of 1965 as in effect on August 5, 1997, and that is eligible to participate in the Department of Education's student aid programs.
For specific information on qualifying educational tax deductions and credits see IRS Pub 970, Tax Benefits for Education and contact your tax advisor. If you believe your school is required by IRS to provide a 1098-T, contact information for the IRS can be found on their website at http://www.irs.gov/.
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Are there tax benefits associated with AlaskAdvantage loans?
Yes. The federal government has authorized various tax relief benefits for individuals pursuing higher education. Check with your tax advisor or the IRS web site for the latest details.
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What is default?
Default results if you fail to make a series of scheduled minimum monthly payments on your loan account. Negative consequences of default may begin when a loan becomes 180 days (six months) past due. Defaulting on your education loan will cause long-term damage to your credit record.
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What happens if I default on my loan?
If you default on your loan, any or all of the following may happen:
- The entire loan balance (principal and interest) can be immediately due and payable
- You will lose your deferment options
- You may be charged late fees and collection costs
- Your loan(s) status will be reported to national credit bureaus, including delinquency and default
- Your Alaska Permanent Fund Dividend (PFD) may be garnished and applied to your loan(s)
- Your wages may be garnished to repay your loan(s)
- Your income tax refund may be seized to repay your loan(s)
- You may not be able to renew your professional license
- You may be sued for the balance of your loan
- You may lose eligibility to obtain educational aid in the future
- Your school may withhold copies of your transcripts
- Your account may be referred to the loan guarantor for additional collection action
- Your account may be referred to a collection agency
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How can I avoid default?
- Read the terms of your promissory note carefully to know your obligations and options
- Read and respond to any correspondence you receive from ACPE
- Notify ACPE if you change your address or phone number
- Notify ACPE if you leave or return to school
- Contact us immediately if you are unable to make your scheduled monthly payment
- Learn about and use the deferment options entitled to you
- If you are not eligible for deferment, consider forbearance or an alternate repayment schedule
ACPE Repayment Counseling staff is here to discuss all available options for making your payments more manageable. Call (800) 441-2962 for more details!
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