 "Best In U.S." AlaskAdvantage Education Loan Package ACPE Loan Interest to Drop Below 2 Percent June 12, 2002
"The AlaskAdvantage programs are a great way for Alaska students to have a low interest loan for undergrad or graduate programs, and receive even lower rates if they go to school in Alaska or live here while they repay the loans," Lt. Gov. Fran Ulmer said Tuesday. "It's wonderful news for Alaska families and for our state universities." On April 25, 2002, the ASLC signed off on borrower benefits for the inaugural year of the AlaskAdvantage Education Loan Programs. These programs allow Alaskans and students attending Alaska postsecondary schools to package federally guaranteed aid with state Supplemental Education Loans at greatly reduced rates. Capitalizing on the current trend of historically low market rates, at its June 6, 2002 meeting the ASLC set the Alaska Supplemental Education Loan (ASEL) base rates at 3.46 percent while the borrower is in school, and at 4.56 percent during the repayment period. 2002-2003 base rates on the AlaskAdvantage federally guaranteed loan are 3.46 percent during the in-school period and 4.06 percent during the repayment period. Borrowers can qualify for lower loan rates if they attend Alaska higher education institutions, reside in Alaska while paying back the loans, use electronic payment technologies, or pay on time during the first 48 months of repayment. Once these benefits are applied to the base rates, interest rates can drop as low as 1.46 percent for qualifying borrowers in school, and as low as 0.31 percent for qualifying borrowers in repayment. These rates are phenomenally low compared to the federal base rates of 3.46 percent while in school, 4.06 percent during repayment. "Our staff have looked at other lenders' 2002-2003 rates and benefits and are convinced that AlaskAdvantage loans can be appropriately tagged 'the best in the U.S.'," said Diane Barrans, Executive Officer of the ASLC and Director of the corporation's lending partner, the Alaska Commission on Postsecondary Education. "Our mission is to make postsecondary education and training affordable in Alaska. We feel fortunate that, as an enterprise agency of the State, the ASLC can offer Alaskans such wonderful benefits," Barrans said. The AlaskAdvantage program also offers income-sensitive and graduated repayment options, alternatives for borrowers experiencing temporary financial hardships, and the ability to receive just one bill for federal and state loans. "To say we're excited about our products would be a huge understatement," said Barrans. "We try to structure our financial offerings to provide maximum savings to borrowers while ensuring that the program continues to sustain itself. We're glad to find ourselves in a position to introduce our new products and services to Alaska's students in such an incredibly positive way," Barrans said. As part of its public service mission, the Corporation provides loans at the lowest possible costs and returns corporate income to borrowers in the form of borrower benefits. To do so, the Corporation generates revenues through the sale of tax-exempt bonds, using those revenues to make student loans. The Corporation will set the variable interest rate on the AlaskAdvantage loans each June, based on the federal formula for student loan financing. The ASLC will also set benefits annually, based on its financial capacity to absorb costs on the borrower's behalf. In addition to providing education loans, as an enterprise agency of the state the Corporation normally makes an annual payment to the State of Alaska as a return on capital the state invested from 1973 through the 1980s. To received AlaskAdvantage loans and benefits, students must select ACPE as their lender. For more information, visit the ACPE Web site at www.state.ak.us/acpe or call 1-800-441-2962. Contact: Diane Barrans, Executive Director, Alaska Commission on Postsecondary Education; Executive Officer, Alaska Student Loan Corporation, (907) 465-6740
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