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.
Pros
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
Cons
Strict residency requirements- Inaccessible for international students
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.
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.
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 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.
ASLA Eligibility Criteria, Repayment Options & More
Fees and Terms
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.
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 11/1/2024 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 full
principal and interest 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 11/1/2024 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 full
principal and interest 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
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
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.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. 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 11/1/2024. 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 the Flat Repayment Option 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.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. 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 11/1/2024. 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 the Flat Repayment Option with the shortest available loan term.
ASLA FAQs
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.