If you add up all of your sources of aid and still fall short of meeting the cost of attendance at your school, a DEAL Student Loan is a good option to help you make up the difference. The DEAL Student Loan provides students with an outstanding alternative loan option when they are unable to obtain adequate funds through federal student aid programs. The DEAL Student Loan is funded by BND and guaranteed by Student Loans of North Dakota (SLND).
How do I know if I qualify for a DEAL Student Loan? (Qualifications are subject to change without notice.)
Your state of legal residence OR the school that you are attending must be located in one of the following states: North Dakota, South Dakota, Minnesota, Montana, Wyoming or Wisconsin.
You must be a U.S. citizen attending an eligible school, be making satisfactory academic progress in an eligible program and must not have any other loans in default.
The school certifies your current enrollment or acceptance for enrollment, academic progress and eligibility.
Whether you take one class or are a full-time student, you may qualify for a DEAL Student Loan.
High school students participating in dual credit programs may qualify for a DEAL Student Loan.
You, or a creditworthy cosigner, must meet specific credit criteria.
What are the credit criteria?
Generally, if you have a credit score of 700 or higher you will qualify. If your credit score is in the 575 to 699 range, BND will do a thorough review of your credit history to determine if you meet the credit requirements. You will not qualify if your credit score is below 575.
Are there loan limits?
Yes. For any student that does not have a DEAL Student Loan balance as of July 1, 2012, the maximum DEAL Student Loan limit for Undergraduate students is $50,000. The maximum DEAL Student Loan limit for graduate students is $50,000. (Some schools with high cost programs such as medical, dental, law or aviation may be approved for higher loan limits.) Students who have a DEAL Student Loan balance as of July 1, 2012 are not subject to maximum loan limits. The minimum DEAL Student Loan amount is $500 per loan. As a borrower, you may not borrow more than the cost of attendance at your school minus all other financial aid received for the loan period.
What is the interest rate? (A fixed or variable interest rate is available.)
The interest rate for a fixed rate loan will be set on the day the Loan Approval Disclosure is generated and remains the same until the loan is paid in full. The current interest rate is effective January 1 through March 31, 2014 and was calculated using the Federal Home Loan Bank (FHLB) 10 Year Advanced Rate of 3.72% as posted by Federal Home Loan Bank - Des Moines on December 13, 2013 at 9:35 a.m. CT plus 2% or 3% dependent upon the student's state of legal residence or the location of the school the student is attending.
The interest rate for a variable rate loan decreases or increases throughout the life of the loan. The current interest rate is effective January 1 through March 31, 2014 and was calculated using the 3-month London Interbank Offered Rate (LIBOR) of .24% as posted on Bloomberg L.P. page BTMM USD on December 13, 2013 at 9:35 a.m. CT plus 1.5% or 2.5% dependent upon the student's state of legal residence or the location of the school the student is attending.
Student/College Information - Fee and Interest Rate Comparison Table
Variable Interest Rate
Variable APR 1
ND student attending a ND college
Out-of-state student attending a ND college
ND student attending an out-of-state college
Out-of-state student attending an out-of-state college
1 The Annual Percentage Rate (APR) is typically different than the actual interest rate because the APR considers fees and reflects the cost of your loan as a yearly rate. The APR’s listed above also assume the interest that accrues during the in-school and grace period is paid monthly prior to the loan entering repayment.
2 The Annual Percentage Rate (APR) example provided assumes a loan balance of $10,000, the current interest rate of 6.72% and a repayment term of 120 payments.
3 The Annual Percentage Rate (APR) example provided assumes a loan balance of $10,000, the current interest rate of 2.74% and a repayment term of 120 payments.
Are there any fees?
No fees are paid by North Dakota residents or students attending a school in North Dakota (fee is paid by BND). All remaining students are charged a 3.75% Administrative Fee.
The DEAL Student Loan is guaranteed by the state of North Dakota and the administrative fee allows BND to help offset the costs associated with administering the program. The administrative fee benefits all students by providing loan forgiveness if they die or become permanently disabled.
When does repayment begin?
Although you are not required to make payments while you are in school, it is to your advantage, and we encourage you to make payments during this time. By making payments, or by paying some of the interest, it will reduce the total amount that you have to pay throughout the life of the loan. Any interest you do not pay will be capitalized (added to your principal balance) when your loan enters repayment.
Your loan will enter repayment six months after you graduate, cease to be enrolled or decrease enrollment to less than half-time. The minimum monthly payment is typically $50. Accounts 15 days delinquent will be assessed a late charge of $15 or 6% of the monthly payment, whichever is less.
While in repayment, a .25% interest rate reduction will be given for automatic payments from a checking or savings account.
How long do I have to repay?
Typically, you have 10 years to repay a DEAL Student Loan; however, you may be eligible for an Extended Repayment Plan if your outstanding principal and interest totals more than $30,000.
Will my DEAL Student Loan be consolidated with other student loans?
DEAL Student Loans are a North Dakota state alternative loan program and are not part of the federal student loan program. The loans are not eligible for the Federal Student Loan Consolidation Program. However, BND will combine all of your DEAL Student Loans into one monthly payment or you may want to consider BND’s DEAL Consolidation Loan Program.
What is required to complete a DEAL application request?
A completed Borrower Application and Promissory Note
A completed Cosigner Credit Application and Promissory Note
A completed DEAL Loan Request to School
How do I apply?
Get your loan processed faster! "Apply Online"now for a DEAL loan!
If you prefer to complete a paper application, download the forms below. The college will be asked to certify the student's current enrollment or acceptance for enrollment, academic progress, and eligibility. You may also contact BND at 1-800-472-2166 ext. 5763 for a DEAL application.
Note: If the DEAL Approval Disclosure and Applicant Self-Certification forms are not acknowledged, signed and returned to our office within the time frame noted on the Approval Disclosure, the loan request will be cancelled.