What a payday loan costs — before Alaska’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Alaska
- Rate cap
- Licensed payday loans are capped at $500 with $15/$100 fees (~195–521% APR). A 36% cap (SB 39) passed the Legislature in 2025 but was vetoed — no cap is currently in force.
- Key law
- Alaska Deferred Deposit Advances Act (AS 06.50); reform bill SB 39 vetoed by Gov. Dunleavy in June 2025.
- Enforcement
- No major tribal-specific action verified; the Division of Banking and Securities licenses and examines deferred-deposit lenders.
In 2025 the Alaska Legislature voted 38-22 for a 36% APR cap, but the Governor vetoed it, leaving APRs above 500% possible.
What it means for a Alaska borrower
State fee limits apply to licensed lenders, but tribal and out-of-state online lenders use sovereignty models to exceed them. Alaska is also home to Minto Money and Birch Lending (Native Village of Minto).
Before you borrow in Alaska
- File a complaint with the Alaska Division of Banking and Securities.
- Confirm whether the online lender is state-licensed — unlicensed loans may be challengeable.
Cheaper first — try these before a payday loan in Alaska
Payday Loans and tribal lenders in Alaska
Many online lenders that market payday loans to Alaska residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Alaska residents and how state law applies to them, see the Alaska tribal-lending page.
Tribal loans in Alaska →Frequently asked questions
Are payday loans legal in Alaska?
In Alaska, payday-style loans are legal and enforceable, commonly at around 400% APR. The speed is real; so is the cost and the rollover trap. Compare the total dollars repaid before you borrow, and try a credit-union alternative first.
What is the maximum payday loan rate in Alaska?
Licensed payday loans are capped at $500 with $15/$100 fees (~195–521% APR). A 36% cap (SB 39) passed the Legislature in 2025 but was vetoed — no cap is currently in force.
What can I do about a payday loan I already have in Alaska?
Alaska allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Alaska attorney general or the CFPB if the lender breaks the rules.