Refinancing Loan

Yes, you are required to be an Arkansas resident.

Student loan refinancing can lower your interest rate and save you money. You can refinance both private and federal loans so that you will only have one payment.

You may qualify for assistance based on your situation. Please contact ASLA as soon as possible if you experience issues, so we can help you avoid delinquency.

To be eligible, you and any cosigners cannot have defaulted on any private or government student loan. In addition, you and any cosigners must be citizens or permanent residents of the United States. Cosigners must reside in the United States. Military addresses are considered U.S. address if designated as an APO or FPO.

To qualify for the Arkansas Refinance Loan, you or your cosigners must:

• Have monthly payments for approved credit (mortgages, rent, car loans, credit cards and other forms of credit) that do not exceed 50% of gross monthly income (if a mortgage or rent is not included, debt-to-income ratio cannot exceed 35%). All student loan debt will be treated as though it is in repayment. Applicants and/or cosigners with a mortgage who earn a combined income greater than or equal to $100,000 per year must have monthly payments for approved credit (mortgages, rent, car loans, credit cards and other forms of credit) that do not exceed 45% of gross monthly income.
• Have a FICO score of at least 660. (The FICO score used is the TransUnion FICO Score 8, which is based on data from TransUnion and may be different from other credit scores. FICO is a registered trademark of the Fair Isaac Corporation.)
• Have no more than two accounts reporting 30-day delinquencies and no delinquencies of 60 days or more during the previous two years.
• Have no charge-offs, repossessions, collection accounts, judgments, foreclosures, garnishments by credit providers or tax liens.
• Have no previous bankruptcies. Please note that the list of criteria above may not be exhaustive. ASLA may require you or your cosigners to meet additional criteria in order to qualify for a loan. ASLA reserves the right to change the list of criteria in any way from time to time without notice.

Arkansas Refinance Education Loan borrowers can release their cosigners from payment obligations:

• After 48 consecutive monthly principal and interest payments are received on time.
• When the release is requested, the student borrower must meet the same credit and underwriting criteria the cosigner possessed at the time of the loan application.

There are three different repayment terms for the Arkansas Refinance Education Loan so that you can choose the one that works with your financial situation.

The Arkansas Refinance Education Loan must be:

• At least $5,000.
• No more than $250,000.

Borrowers may refinance the following loan types into the Arkansas Refinance Education Loan:

• Federal loans (William D. Ford Federal Direct Loan, Federal Family Education Loan and Federal Perkins Loan programs) including:
• 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.

Consumer loans, such as those used to attend coding bootcamps or other specialized training, are not eligible to be refinanced in an Arkansas Refinance Education Loan.

You may earn a 0.25% interest rate reduction on your Arkansas Refinance Education Loan by making auto-debit payments.

Arkansas Refinance Education Loans has five different repayment plans. If you select the 10 or 15 year repayment terms, you are eligible for graduated repayment plans where you begin with lower payments that increase gradually during the life of the loan. By using a graduated repayment plan, you will pay more in interest over the life of the loan because the principal balance will decrease at a slower rate. The five and seven-year repayment terms do not qualify for repayment plan changes.

ASLA recognizes and appreciates the sacrifices made by members of the military and their families. To assist service members with their student loan, we offer an Armed Forces interest reduction program. Through the program, service members can get interest reduced to 0.00% on their private student loans.

You may be eligible for the program if you meet all the following requirements:

• While on federal active duty, you have a non-defaulted private student loan owned by ASLA during the period of eligibility.
• You are deployed between Sept. 11, 2001, and June 30, 2021.

Note: ASLA is required to issue a 1099-C form to the IRS and the borrower reporting a reduction of indebtedness of $600 or more. You should consult your tax adviser regarding any tax consequences resulting from an interest reduction.

In the unfortunate event of a borrower’s death or qualifying total and permanent disability, Arkansas Student Loan Authority will forgive the loan and not require cosigners or the borrower’s estate to satisfy the loan obligation. A tax professional or the IRS can provide additional information about possible tax consequences of loan forgiveness.

No; in the event of a cosigner’s death or qualifying total and permanent disability, you will not be required to find a new cosigner for an existing loan. In addition, if a cosigner suffers a qualifying total and permanent disability, Arkansas Student Loan Authority will release the cosigner from his or her obligation.

Customer service for all loans offered by Arkansas Student Loan Authority will be provided by Aspire Servicing Center. ASLA will remain the owner of your loan.