Arkansas Student Loan Snapshot
The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA offers three types of student loans: undergraduate and graduate loans, family loans, and student loan refinancing. The traditional undergraduate and graduate student loans are best for students who have a qualified cosigner and want a variety of repayment options. The family loan is best for family members or friends who want to help an undergraduate or graduate student with college costs. The refinance loan is best for students looking to refinance existing debt to simplify repayment and get a lower interest rate. Collectively, the three options provide a great selection for borrowers who are located in Arkansas, have a qualified cosigner, and want competitive interest rates.
Fixed APR Range: 3.20% to 6.34%
Variable APR Range: 6.06% to 10.61%
Loan Amounts: $1,001 to the cost of attendance minus other aid; $100,000 lifetime maximum
Minimum Credit Score: 670
| Best Features | Drawbacks |
| • Competitive interest rates • Family loan option • Variety of repayment options • Cosigner release option after 48 months • Provides assistance with college planning • Offers 0.25% interest rate reduction for opting into auto-debit payments | • Students enrolled less than half-time are not eligible • Strict residency requirements • Student loans are not available for international students |
What’s Inside
- Interest Rates, Fees, and Terms
- Eligibility Requirements – Financial
- Eligibility Requirements – Personal
- Repayment Options
- Customer Service
- FAQ
Best Features of Arkansas Student Loan Authority
Competitive interest rates
When looking for a student loan, finding a low interest rate is typically a top priority. If you qualify for a student loan with ASLA, you’ll have access to some of the best rates in the industry. ASLA’s fixed and variable interest rates are typically lower than competing student lenders. The ranges offered are:
| Undergraduate & Graduate | Family | |
| Fixed APR* | 3.20% to 6.34% | 3.20% to 6.42% |
| Variable APR* | 6.06% to 10.61% | N/A |
Family loan option
Unlike many other lenders, ASLA offers a family loan designed for family members or friends looking to borrow a student loan on a student’s behalf. The family loan option is great for students who do not qualify for a loan on their own.
Variety of repayment options
ASLA offers a range of repayment options depending on your financial situation. If you take out an undergraduate or graduate student loan, you will have access to all three repayment options: immediate, interest-only, and deferred repayment. However, if your family member or friend opts for the family loan to fund your education, you will only have access to the immediate and interest-only repayment option.
| Repayment Option | Terms | Pros | Cons |
| Immediate Payment Option | Make principal and interest payments while you’re in school. | You will make significant progress in paying off your student debt. This option will save you the most money in the long run. | It may be challenging to afford to make full payments while in school. |
| Interest-Only Payment Option | Pay only interest while you’re in school. | Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school. | You won’t make any progress paying down your loan balance while you’re a student. But you won’t owe more than you borrowed when it’s time to start making full payments. |
| Deferred Payment Option | Don’t make any payments while you’re in school. Begin repayment after graduation or 6 months after graduation. | You won’t have to make payments while you’re in school. | You will likely pay the highest overall cost since unpaid interest will be added to your principal amount at the end of your grace period. |
Cosigner release option after 48 months
If you need a cosigner for your student loan, ASLA might be a good option for you. Unlike several other lenders, ASLA allows you to release your cosigner after 48 months of timely payments. This can be helpful if you want to build credit in your own name.
Provides assistance with college planning
ASLA provides a wide variety of college planning resources, from checklists to workshops to college fairs. ASLA’s college planning services can help you find scholarships, save for college more efficiently, and make sure you’re completing financial aid forms on time.
Offers 0.25% interest rate reduction for opting into auto-debit payments
Similar to other lenders, ASLA offers a 0.25% interest rate discount for borrowers who opt into auto-debit payments. This interest rate discount can save you thousands over the life of your loan.
Drawbacks of Arkansas Student Loan Authority
Students enrolled less than half-time are not eligible
If you are not enrolled in school at least half-time, you are ineligible for student loans through ASLA. If you’re studying less than half-time, you may want to consider College Ave for your private student loan. To be eligible for a loan with ASLA, you must meet the following criteria.
| Undergraduate and Graduate Student Loan | Family Loan | |
| Citizenship & Residency | Must be a U.S citizen or permanent resident. You are also required to be an Arkansas resident or attend a school in Arkansas. | Borrower must be a U.S citizen or permanent resident. The borrower or the student must be an Arkansas resident, or the student must be attending a school in Arkansas. |
| Enrollment | Must be enrolled at least half-time or accepted for half-time enrollment at an eligible school. | Student must be enrolled at least half-time or accepted for half-time enrollment at an eligible school. |
| Min. Income | Did not disclose. Borrowers must have a debt-to-income ratio that does not exceed 40% of their gross monthly income. | Did not disclose. Borrowers must have a debt-to-income ratio that does not exceed 40% of their gross monthly income. |
| Credit | Borrowers must have a credit score of 670 or a cosigner with a credit score of 670. | Borrowers must have a credit score of 670. |
Strict residency requirements
While most student lenders accommodate borrowers in all 50 states, ASLA student loans are only available to borrowers who either live in Arkansas or are pursuing a degree at a school in Arkansas. If you are neither, you are not eligible for a student loan with ASLA.
Inaccessible to international and DACA students
Due to ASLA’s strict citizenship and residency requirements, international students are ineligible for student loans with ASLA. DACA students are only eligible for student loans with ASLA if they have also received permanent resident legal status. If you are an international or DACA student without permanent legal residence, check out MPOWER and Prodigy Finance who offer private student loans to international and DACA students.
Arkansas Student Loan Authority: The Nuts and Bolts
Interest Rates, Fees, and Terms
| Fixed APR Range | 3.20% to 6.34% |
| Variable APR Range | 6.06% to 10.61% |
| Loan Terms | 10 or 15 years |
| Loan Amounts | $1,001 to the cost of attendance minus other aid; $100,000 lifetime maximum |
| Application or Origination Fee | No. |
| Prepayment Penalty | No. |
| Late Fees | No. |
Eligibility Requirements – Financial
| Minimum Credit Score | 670 |
| Minimum Income | Did not disclose. |
| Typical Credit Score of Approved Borrowers or Cosigners | Did not disclose. |
| Typical Income of Approved Borrower | Did not disclose. |
| Maximum Debt-to-Income Ratio | 40%; if mortgage or rent is not included, DTI cannot exceed 25%. |
| Ability to qualify if you’ve filed for bankruptcy | No. |
Eligibility Requirements – Personal
| Citizenship | Must be a U.S. citizen or permanent resident. |
| Location | Available to borrowers who either live in Arkansas or are attending a school in Arkansas. |
| Must be enrolled half-time or more | Yes. |
| School requirements | Must attend an eligible nonprofit, Title IV eligible, degree-granting, accredited college or university. |
| Percentage of borrowers who have a cosigner | Did not disclose. |
Repayment Options
| In-school repayment options | Immediate repayment: Make full principal and interest payments while in school. Interest-only repayment: Only pay interest while you’re in school. Deferred repayment: Wait to make payments until you’re out of school. |
| In-school Deferment | Yes. |
| Graduated repayment | No. |
| Military Deferment | ASLA offers an Armed Forces interest reduction program that allows service members to have 0% interest on their student loans while on federal active duty. |
| Disability Deferment | Did not disclose. |
| Forbearance | Did not disclose. |
| Cosigner Release | Yes, after 48 consecutive monthly principal and interest payments. The borrower must meet underwriting and credit criteria at the time of cosigner release. |
| Death or Disability Discharge | Yes. |
| Loan discharge if cosigner dies or becomes disabled | No. |
| Autopay | Allows for surplus payments via autopay: Did not disclose. Allows for biweekly payments via autopay: Did not disclose. |
Customer Service
| Loan Servicer | Aspire Servicing |
| In-house Customer Service Team | Yes. |
| Process for Escalating Concerns | Did not disclose. |
| Borrowers get assigned a personal customer service representative | Did not disclose. |
| Average time from application to approval | Did not disclose. |
Before you take out a loan from Arkansas Student Loan Authority…
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FAQ
Is ASLA a legitimate lender?
Yes, ASLA is a legitimate lender that has been supporting students pursuing higher education for over four decades. ASLA is a division of the Arkansas Development Finance Authority and is a state entity created to provide access to information about educational funding for all Arkansas students pursuing higher education. They offer a variety of educational support for students, from student loans to informational workshops.
Is ASLA available in all 50 states?
No. ASLA is only available to borrowers living in or attending school in Arkansas.
How long does it take to get an ASLA student loan?
Submitting an application through ASLA takes a few minutes. Once you’ve submitted your loan application, ASLA will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time to actually receive your loan. Your school must approve the loan which may take between four to six weeks.
What happens if I don’t qualify for an ASLA student loan?
If you don’t qualify for an ASLA student loan, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or trying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders ready to help you. And best of all, it won’t impact your credit score.
Are ASLA student loans federal or private?
ASLA loans are private loans. Before you take on a private loan, we recommend that you exhaust your federal loan options.
Does applying for a loan through ASLA hurt my credit score?
In order to estimate what rate you qualify for, ASLA may conduct a soft credit check — this does not affect your credit score. If you choose to accept the ASLA loan, the company will conduct a hard credit check to verify your information. A hard credit check may temporarily impact your credit score.
See Arkansas Student Loan Authority’s disclosures here.