Arkansas Student Loan Authority 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. While ASLA’s student loan refinancing is only available to Arkansas residents or students attending a school in Arkansas, they do offer competitive interest rates and flexible terms to those who qualify. ASLA is best if you are an Arkansas resident or attending a school in Arkansas and want flexible repayment options.
Fixed APR Range: 3.50% to 7.48%
Variable APR Range: N/A
Loan Amounts: $5,000 to $250,000
Minimum Credit Score: 670
| Best Features | Drawbacks |
| • Competitive interest rates • Ability to refinance several types of loans • Variety of repayment options • Cosigner release option after 48 months • Offers 0.25% interest rate reduction for opting into auto-debit payments | • Strict residency requirements • Inaccessible 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 Refinancing with ASLA
Competitive interest rates
When looking to refinance your student loan, finding a low-interest rate is typically a top priority. If you qualify for student loan refinancing through ASLA, you will have access to competitive rates.
| ASLA’s Student Loan Refinance | |
| Fixed APR* | 3.50% to 7.48% |
Ability to refinance several types of loans
ASLA allows borrowers to refinance several types of loans such as:
- Federal Loans (Federal Direct Loans, Federal Family Education Loans (FFEL), and Federal Perkins Loans)
- Undergraduate and graduate subsidized and unsubsidized student loans
- PLUS Loans taken out by parents or graduate/professional students
- Private education loans
- Previously refinanced or consolidated education loans
Variety of repayment options
ASLA offers a range of repayment options depending on your financial situation. If you refinance with ASLA, you will have access to all three repayment options: standard repayment, graduated repayment, and ASLA’s unique Select 2 repayment option.
| Repayment Option | Terms | Pros | Cons |
| Standard Repayment | Make minimum monthly payments for the entire duration of your repayment period. | Your monthly payment will remain the same over the course of your loan, making it easier to manage and budget for. | You will likely pay more in interest if you make only the minimum monthly payment. |
| Graduated Repayment | Begin with lower payments, then increase payment amount by 10% every two years. | Your monthly payments will be more manageable. | You will pay more interest over the life of the loan because the principal balance will decrease at a slower rate. |
| Select 2 Payment Plan | Make interest-only payments during the first two years of repayment, then increase to a standard payment amount for the remainder of the repayment term. | Your monthly payments will be more manageable in the beginning. | You will pay more interest over the life of the loan because the principal balance will decrease at a slower rate. |
Cosigner release option after 48 months
If you need a cosigner to refinance your student loan(s), 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.
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 Refinancing with ASLA
Strict residency requirements
While most student lenders accommodate borrowers in all 50 states, ASLA refinance loans are only available to borrowers who are Arkansas residents. If you are not, you are not eligible to refinance with ASLA.
Inaccessible to international students
Due to ASLA’s strict citizenship and residency requirements, international students are ineligible to refinance with ASLA. If you are an international student without permanent legal residence, check out MPOWER and Prodigy Finance who offer student loan refinancing to international students.
Not an Arkansas resident? Complete our 2-minute form to see if you qualify and at what rate with over 15 different lenders. It’s quick, easy, and does not impact your credit score.
Arkansas Student Loan Authority: The Nuts and Bolts
Interest Rates, Fees, and Terms
| Fixed APR Range | 3.50% to 7.48% |
| Variable APR Range | N/A |
| Loan Terms | 5, 7, 10, or 15 years |
| Loan Amounts | $5,000 to $250,000 |
| Ability to transfer a parent loan to the student | Did not disclose. |
| 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 includes, 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 live in Arkansas. |
| Must have graduated | Did not disclose. |
| Must have attended a school authorized to receive federal aid | Did not disclose. |
| Percentage of borrowers who have a cosigner | Did not disclose. |
Repayment Options
| In-school Deferment | Yes. |
| Graduated repayment | Yes. |
| 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 approval to payoff | 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 refinance loans are only available for borrowers that live 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. You can speed up the process by requesting debt payoff letters from your existing lenders and loan servicers.
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.