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.
Pros
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
Cons
Students enrolled less than half-time are not eligible- Strict residency requirements
- Student loans are not available for international students
Best Features of Arkansas Student Loan Authority
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.
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.
*Rates as of July 23, 2023. The lowest states rates include 0.25% auto-debit discount, which requires you to agree to make your scheduled monthly payments by an automatic monthly deduction (ACH) from a savings or checking account.
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.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
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 Eligibility Criteria, Repayment Options & More
Fees and Terms
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
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 3/07/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 3/07/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Arkansas Student Loan Authority 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.