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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 September 30, 2008
and was calculated using the Federal Home Loan Bank (FHLB) 10 Year Advanced
Rate of 5.24% as posted by Federal Home Loan Bank - Des Moines on June
25, 2008 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.
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 September 30, 2008
and was calculated using the 3 Month LIBOR of 2.81% as posted by Bloomberg
on June 25, 2008 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% |
7.24% |
4.31% |
| Out-of-state student attending a ND college |
0% |
7.24% |
4.31% |
| ND student attending an out-of-state college |
0% |
7.24% |
4.31% |
| Out-of-state student attending an out-of-state college |
2% |
8.24% |
5.31% |
(A .25% interest rate reduction will be given if
the borrower or cosigner utilizes the ACH payment method.)
Fixed Rates for Federal Loans First Disbursed on or After July 1, 2008
Rates are subject to change every July 1.
| Loan Type |
Grade Level |
Fixed Interest Rate |
| Stafford Subsidized |
Undergraduate |
6.00% |
| Stafford Subsidized |
Graduate |
6.80% |
| Stafford Unsubsidized |
Undergraduate
Graduate |
6.80% |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS (PLUS Pro)
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 (PLUS Pro)
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 |
1% |
1% |
7/1/08
to
6/30/09 |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS (PLUS Pro)
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
(exceptstudents whose parents cannot borrow a PLUS loan) |
Base Amount |
Additional
Unsubsidized Loan Amount |
Prior to
July 1, 2008 |
Effective
July 1, 2008 |
| Freshman |
$3,500 |
$0 |
$2,000 |
| Sophomore |
$4,500 |
$0 |
$2,000 |
| Junior or Senior |
$5,500 |
$0 |
$2,000 |
Independent Undergraduate Students andDependent Students
(whose parents cannot borrow a PLUS loan) |
Base Amount |
Additional
Unsubsidized Loan Amount |
Prior to
July 1, 2008 |
Effective
July 1, 2008 |
| 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 |
Base Amount |
Additional
Unsubsidized Loan Amount |
|
$8,500 |
Unchanged at $12,000 |
|
