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LelaCHOICE Parent Loan Details

The LelaCHOICE loan is available to parents and is subject to credit approval. Applicants who do not meet the underwriting and credit criteria on their own may apply with cosigners.

Please note: Aspire Servicing Center has a contractual relationship with the Louisiana Education Loan Authority (Lela) wherein Aspire Servicing Center performs certain private student loan (private loan) services for Lela.

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Eligibility Criteria

To be eligible for this private education loan, you must:

  • Be a Louisiana resident or be applying for a loan for a student attending an eligible Louisiana college or university.
  • Be of majority age pursuant to applicable law at the time of application.
  • Not have defaulted on any private or government student loan.
  • Be a citizen or permanent resident of the United States. Cosigners must be citizens of the United States and must reside in the United States. Military addresses are considered U.S. addresses if designated as an APO or FPO.

The student for whom the funds are being requested must:

  • Be accepted, enrolled or attending any nonprofit, Title IV eligible, degree-granting, and/or non-degree granting accredited college or university on at least a half-time basis, as defined by the school.
  • Be making satisfactory academic progress in an eligible education program.
  • Be a citizen of permanent resident of the United States.
  • Complete a Student Authorization Form.

Underwriting Criteria

To qualify for the LelaCHOICE Parent Loan, you or your cosigners must have:

  • Monthly payments for approved credit (mortgages, rent, car loans, credit cards and other forms of credit, including the loan for which the student has submitted an application) that do not exceed 40% of gross monthly income (if a mortgage or rent is not included, debt-to-income ratio cannot exceed 25%). All student loan debt will be treated as though it is in repayment.
  • Continuous employment over the last two years (This requirement may be waived for retirees, disabled persons or those receiving a verified income.)
  • A FICO score of at least 670 (The FICO score used is the TransUnion FICO Score 4, 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.)
  • No more than two accounts reporting 30-day delinquencies and no delinquencies of 60 days or more during the previous two years.
  • No charge-offs, repossessions, collection accounts, judgments, foreclosures, garnishments by credit providers or tax liens.
  • No previous bankruptcies.
  • Not defaulted on any private or government student loan.

Note: For joint cosigned LelaCHOICE Parent Loans, at least one cosigner must meet all credit underwriting criteria with the exception of the debt-to-income ratio, which the cosigners may combine debt and income to calculate the debt-to-income ratio. For loans with only one cosigner, either the applicant or cosigner must meet all credit underwriting criteria with the exception of the debt-to-income ratio, which the applicant and cosigner may combine debt and income to calculate the debt-to-income ratio.

Change Notice: Please note that the list of criteria above may not be exhaustive. Lela may require you or your cosigners to meet additional criteria in order to qualify for a loan. Lela reserves the right to change the list of criteria in any way from time to time without notice.


Repayment Benefits

Interest Rate Reduction
As a LelaCHOICE loan borrower, you can earn a 0.25% interest rate reduction when you sign up to have monthly payments automatically withdrawn.

No Capitalized Interest
Lela never capitalizes interest during repayment. That means you never pay interest on interest and can mean lower costs if you need to use forbearance to postpone payments at any point.

Cosigner Release
In addition, LelaCHOICE student borrowers may apply to release any cosigners from payment obligations:

    • After the first 24 consecutive monthly principal and interest payments are received on time.
    • If you meet the underwriting and credit criteria at the time the cosigner release is requested.

Repayment Choices

With the LelaCHOICE Student Loan, you choose when to start making payments.

The Immediate Payment option features our lowest rates. This option:

  • Requires monthly principal and interest payments once the loan is fully disbursed.
  • Has a 10-year principal and interest repayment period.

The Interest-Only Payment option:

  • Requires monthly interest payments once the loan is first disbursed.
  • Features a six-month separation period when interest-only payments are required after you graduate, drop below half-time enrollment or leave school.
  • Has a 10-year principal and interest repayment period.

The Deferred Payment option:

  • Postpones repayment until after you graduate, leave school or drop below half-time enrollment.
  • Features a six-month separation period with no required payments.
  • Has a 15-year principal and interest repayment period.

In addition, unlike some lenders, Lela never capitalizes interest during repayment. This means you never pay interest on interest and can mean lower costs if you need to use forbearance to postpone payments at any point.


Loan Amounts

The LelaCHOICE Student Loan must be:

  • No more than the cost of attendance minus other aid annually.
  • No more than $200,000 cumulative for parent borrowers.
  • At least $1,001.

Please note: Aspire Servicing Center has a contractual relationship with the Louisiana Education Loan Authority (Lela) wherein Aspire Servicing Center performs certain private student loan (private loan) services for Lela.

Change Notice: Lela reserves the right to change the program in any way from time to time without notice.

View a detailed list of Annual Percentage Rate (APR) examples for all options here.

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