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Dakota Education Alternative Loan (DEAL) & Medical DEAL
DEAL loans are North Dakota state alternative loan programs and not part
of the federal student loan program. A fixed or variable interest rate loan may be chosen by the borrower.
The interest rate for a fixed interest rate loan will be set on the day
the loan is first disbursed and remains the same until the loan is paid
in full. The current interest rate is effective through December 31, 2009
and was calculated using the Federal Home Loan Bank (FHLB) 10 Year Advanced
Rate of 4.60% as posted by Federal Home Loan Bank - Des Moines on September
23, 2009 at 9:00 a.m. CT plus 2% or 3% dependent upon the student's state of legal residence or where
the school the student is attending is located.
* Important Update: Through December 31, 2009, the fixed interest rate on DEAL loans for
North Dakota students and students attending a North Dakota college will
be set using the method described above or 5.99%, whichever is less.
The interest rate for a variable interest rate loan decreases or increases
throughout the life of the loan and has no minimum or maximum limit. The
current variable interest rate is effective through December 31, 2009 and
was calculated using the 3 Month LIBOR of .29% as posted by Bloomberg on
September 23, 2009 at 9:00 a.m. CT plus 1.5% or 2.5% dependent upon the student's state of legal residence or
where the school the student is attending is located.
| Student/College Information |
Loan Fee |
Fixed
Interest
Rate |
Variable
Interest
Rate |
| ND student attending a ND college |
0% |
5.99% * |
1.79% |
| Out-of-state student attending a ND college |
0% |
5.99% * |
1.79% |
| ND student attending an out-of-state college |
0% |
5.99% * |
1.79% |
| Out-of-state student attending an out-of-state college |
2% |
7.60% |
2.79% |
(A .25% interest rate reduction will be given if
the borrower or cosigner utilizes the ACH payment method.)
* Important Update: Through December 31, 2009, the fixed interest rate on DEAL loans for North Dakota students and students attending a North Dakota college will be set using the method described above or 5.99%, whichever is less.
Fixed Rates for Federal Loans First Disbursed on or After July 1, 2009
Rates are subject to change every July 1.
| Loan Type |
Grade Level |
Fixed Interest Rate |
| Stafford Subsidized |
Undergraduate |
5.60% |
| Stafford Subsidized |
Graduate |
6.80% |
| Stafford Unsubsidized |
Undergraduate
Graduate |
6.80% |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS for graduate
student borrowers. |
All |
8.50% |
Variable Rates Federal Loans First Disbursed Between July 1, 1998 and June
30, 2006
These rates are calculated based upon statutory formulas and equal the
bond equivalent rate of the 91-day Treasury bills auctioned on May 27,
2008, plus certain statutory percentage add-ons. The 91-day Treasury bills
were auctioned at 1.905 percent, rounded to 1.91 percent.
| Loan Type |
Status |
Variable Interest Rate |
| Stafford Subsidized & Unsubsidized |
Repayment or Forbearance |
4.21% |
| Stafford Subsidized & Unsubsidized |
In-school, Grace, or Deferment |
3.61% |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS for graduate
student borrowers. |
All |
5.01% |
Federal Loans First Disbursed Prior to July 1, 1998
Interest rates on Stafford and PLUS loans are calculated using different statutory formulas, percentage add-ons, or both.
Generally, interest rates on Consolidation loans are fixed rates calculated
based on the weighted average of the loans being consolidated rounded up
to the next higher 1/8 percent, not to exceed 8.25%.
| Loan Type |
Origination
Fee* |
Federal Default Fee* |
Effective Date |
| Stafford Subsidized & Unsubsidized |
.5% |
1% |
7/1/09
to
6/30/10 |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS for graduate
student borrowers. |
3% |
1% |
* The origination fee and federal default fee on all Stafford and/or PLUS
loans may be paid by your lender. Contact them for specific information.
Additional unsubsidized Stafford loan limits applicable to undergraduate
students are increased for loans first disbursed on or after July 1, 2008.
Subsidized limits (up to base amount) are unchanged. For students enrolled
as regular students in eligible programs, annual Stafford loan limits are
as follows:
(Note: A dependent student is any student who is an undergraduate, under
24 years of age, unmarried, has no dependents, and is not a veteran. All
other students are considered independent.)
Dependent Students
(except students whose parents cannot borrow a PLUS loan) |
Subsidized
Base Amount |
Additional
Unsubsidized Loan Amount |
Prior to
July 1, 2008 |
Effective
July 1, 2009 |
| Freshman |
$3,500 |
$0 |
$2,000 |
| Sophomore |
$4,500 |
$0 |
$2,000 |
| Junior or Senior |
$5,500 |
$0 |
$2,000 |
Independent Undergraduate Students and Dependent Students
(whose parents cannot borrow a PLUS loan) |
Subsidized
Base Amount |
Additional
Unsubsidized Loan Amount |
Prior to
July 1, 2008 |
Effective
July 1, 20089 |
| Freshman |
$3,500 |
$4,000 |
$6,000 |
| Sophomore |
$4,500 |
$4,000 |
$6,000 |
| Junior or Senior |
$5,500 |
$5,000 |
$7,000 |
| Graduate and Professional Students |
Subsidized
Base Amount |
Additional
Unsubsidized Loan Amount |
|
$8,500 |
Unchanged at $12,000 |
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