How to Pay for College 2026-2027

TIPS FOR CHOOSING STUDENT LOANS

Student loans can be confusing and complicated. The following information is intended to provide helpful information while understanding that every person’s situation is different. There is not a one-size-fits-all solution when it comes to student loans. Ask questions and research your options. Which student loans should I choose as an undergraduate student? Federal Direct Subsidized & Unsubsidized Loans are typically the best options for an undergraduate. These loans will most likely be included in your Financial Aid Offer that you receive from your chosen school. These loans are usually the best loan choice for undergraduates due to flexible repayment plans and the possible chance of loan forgiveness from the federal government. What if more money is needed? If more loans are needed, the best option may be either a Federal PLUS Loan or a Private Student Loan. For the 2026-27 academic year, we encourage families to thoughtfully consider an Arkansas Education Loan through the Arkansas Student Loan Authority. Here is a comparison to help with your decision.

Federal Direct PLUS Loan for Parents

ASLA Loans

*Fixed APRs vary by loan type and credit profile (currently 2.74%– 8.35%)

Interest Rate: 8.94%

No Origination Fee

Origination Fee: 4.23%

Various Repayment Options

Various Repayment Options

Deferments available

Deferments available

Forgiveness only in unique circumstances

Eligible for Public Service Loan Forgiveness & possibly other forgiveness programs

Approval based on Credit History

Approval based on Credit History

*Current fixed APR ranges: Student Loan 2.74%–7.71%, Family Loan 2.74%–7.84%, and Graduate Loan 2.74%–8.35%. APR varies based on loan type, credit score, repayment option, and loan term. Rates are subject to change.

This information should be considered a general recommendation for the average student. You are encouraged to do your own research. We don’t encourage you to borrow but we encourage you to make wise choices when borrowing is necessary! For student loan and general financial aid counseling, please contact ASLA at 800-443-6030.

13