Student Loan Update

On October 25, President Obama announced two initiatives to assist college students in repaying their student loans.

1. Short Term Special Direct Consolidation Loan Opportunity: This loan option is limited to customers who have Federal loans from two institutions, one of which is the Department of Education and the other from a separate lending institution.
   
   The loan consolidation will offer a .25 percent interest rate reduction plus an additional .25 percent reduction if the customer makes monthly payments using an automatic debit. The option will be available from January 1, 2012 – June 30, 2012.
   
   Beginning January 1, 2012, eligible borrowers will be contacted by one of four national loan servicers and will be provided with instructions for the application process.
   
   Additional information is available on the Department of Education's website.



2. “Pay as you earn” Repayment Plan: Specific details on this option are not clear at this time. Continue to check back to this page as updates will be provided when available.



3. It is important to realize that currently ALL student loan borrowers with eligible Federal loans have an ‘income-based repayment plan’ option available. Qualifications are based on the student’s state of residence, loan amount, family size, and your household Adjusted Gross Income. Please click on the following link to review all repayment options that are available or to determine if you qualify for the Income-Based Repayment option.

KFYR-TV aired a news story on "Relief for Student Loan Struggles" on October 21, 2011.

 

 

 

 

The Dakota Education Alternative Loan (DEAL)

If you are unable to obtain adequate funds through federal student aid programs or are a high school student taking dual credit courses, BND provides the DEAL loan which may help meet your cost of attendance.

The DEAL loan is one of the most competitive alternative loans in the nation. North Dakota students or those who attend school here pay zero fees, have the option of fixed or variable interest rates and can count on quality local customer service.