Q. Who is eligible?
Q. What types of loans are available and what is the interest rate?
Q. Is income of the family a determining factor?
Q. How much can I borrow?
Q. If the applicant has borrowed money to attend school previously from AREF will they be required to complete a new AREF application for each year they borrow?
Q. Can aid be received throughout training?
Q. What schools may borrowers attend?
Q. What is the required monthly payment?
Q. When is the borrower expected to begin repayment?
Q. How will the loan funds be received?

Q. Who is eligible?
A. Arkansas residents who do not reside in the city limits of Little Rock, North Little Rock, Pine Bluff or Fort Smith and have a good scholastic record and have demonstrated a need for financial assistance.

Q. What types of loans are available and what is the interest rate?
A. Subsidized Federal Stafford Loan: Fixed 6.00% for loans guaranteed on or after July 1, 2008 (further reductions through 2012).
Unsubsidized Federal Stafford Loan: Fixed 6.8% (the government does not pay any interest for the student).
Federal PLUS Loan: A fixed interest rate loan made to parents for dependent undergraduate students. 8.5% for loans guaranteed on or after July 1, 2008.
Alternative Loan: For students attending schools not eligible for Stafford loans and for AREF borrowers with special needs. A co-maker is required on the Alternative loan. Interest rates are currently 8.00%, but can vary with the Federal Discount Rate.
Graduate Plus Loans: A fixed rate loan made to Graduate or Professional Student Borrowers. 8.5% for loans guaranteed on or after July 1, 2008.

Q. Is income of the family a determining factor?
A. Income is a determining factor of eligibility only for Subsidized Stafford loans. If a student is dependent, then the parent's income must also be considered.

Q. How much can I borrow?
A. Loan limits on the Federal Stafford (subsidized and unsubsidized) loans and PLUS loans are set by the Federal Government. Alternative loan amounts are similar. (There are additional unsubsidized and aggregate loan limits so please inquire).
Currently students may borrow:
Freshman - $3,500
Sophomore - $4,500.00
Juniors & Seniors - $5,500.00
Graduate - $8,500

Q. If the applicant has borrowed money to attend school previously from AREF will they be required to complete a new AREF application and secure the committee recommendation for each year they borrow?
A. No, the applicant may renew their loan by contacting the AREF office at 1-800-232-5505 for instructions.

Q. Can aid be received throughout training?
A. Yes, Commitments are made on a yearly basis, but if need exists and the school financial aid officer makes a recommendation assistance may be able to continue.

Q. What schools may borrowers attend?
A. Schools attended must be in Arkansas unless training is not available in the state such as dentistry, optometry, and veterinary medicine. Exceptions are made on a limited basis by management providing the out-of-state school attended is close to the borrower's home and special arrangements waive the out of state tuition or a scholarship has been given to offset the higher out of state costs.

Q. What is the required monthly payment?
A. The minimum monthly payment is $50; however, the total amount borrowed determines the amount required monthly to repay the loan within the 10 year maximum repayment period. Additional benefits may apply to certain borrowers. See this repayment calculator site for an estimate of your monthly payment.

Q. When is the borrower expected to begin repayment?
A. Federal Stafford - Six months after borrower ceases to be enrolled as a half-time student.
Federal PLUS - Within 60 days after disbursement of first check.
Alternative - Six months after school attendance ceases.
Grad Plus- Can be deferred until the borrower ceases to be enrolled as a half-time student.

Q. How will the loan funds be received?
A. Stafford loan funds are sent to the Financial Aid Office according to registration dates and the method established by each school or as soon as possible after the loan is finalized. PLUS loan and GRAD PLUS loan checks are made co-payable to the parent or student borrower and the school and mailed to the financial aid office. Alternative loan checks are made payable to the borrower and sent to the school.