Addiction Counselor Internship Loan Program
This loan provides assistance for people completing work experience in a licensed addiction treatment facility under the supervision of a board-registered clinical supervisor. The internship may be paid or unpaid at a facility located in North Dakota.
You must be a U.S. citizen, participating in an internship at an eligible substance abuse treatment facility in North Dakota to obtain a license as an addiction counselor.
- Internship means work experience in a licensed addiction treatment facility under the supervision of a clinical supervisor registered by the board.
- The individual must be beginning the internship after June 30, 2015.
- The Internship may be paid or unpaid.
- The treatment facility must be located within North Dakota
The lifetime program applicant limit is $7,500. There is a minimum loan amount of $500.
Interest rate: The interest rate on outstanding loans must accrue at the Bank’s current Base Rate of 3.25%, but may not exceed an Annual Percentage Rate (APR) of 6.00%. There is no difference between the interest rate and the APR because there are no fees.
Fees: There are no fees for this loan.
BND may take all steps necessary and appropriate to preserve security.
Repayment will begin 12 months from the starting date of your internship program according to the award letter from the North Dakota Department of Human Services.
Although you are not required to make payments while you are in your internship, it is to your advantage to do so. By making payments, or by paying some of the interest, you 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.
Watch a short video about cosigning a student loan.
What is a cosigner?
A cosigner is a person, such as a parent or other close family member or friend, who pledges to pay back the loan if the borrower does not. If the borrower does not make payments when required, the cosigner is liable for repayment of the loan.
How does cosigning a loan affect your credit?
Cosigning a loan is an action that should never be taken lightly because it can have serious implications to your credit history. As the cosigner, the cosigned loan will appear on your credit report and can directly affect your credit as a debt owed.
Ideally, the person you cosign for is reliable, never late and never misses a payment. Your willingness to risk your credit helps the borrower get the loan and can help build a positive credit history for the borrower. If the person you cosigned for does not make payments, you are responsible for paying back the debt. The unpaid debt will appear on your credit report, seriously damaging your credit and perhaps your ability to qualify for new credit. If left unpaid, it could also lead to collection accounts and damage your creditworthiness.
Steps for cosigning a loan
- How does a cosigner apply?
The cosigner can complete the cosigner application form at the same time the borrower applies if they are with the borrower as the borrower completes the application. If the cosigner needs to apply at a different time, the cosigner will receive an email from email@example.com with a link to apply.
- Loan Approval Disclosure
The Loan Approval Disclosure will provide you with important information about the loan you are agreeing to cosign. You do not need to do anything unless you would like to withdraw your application. Smart Money Tip
- Loan Final Disclosure
The Loan Final Disclosure is the last step in the loan process and it gives you a final opportunity to cancel cosigning the loan without any penalty. If you want to continue as the cosigner of the loan, you do not need to do anything.
Repaying the student loan you cosigned
Repayment of the loan you cosigned begins 12 months from the starting date of the borrower’s internship program according to the award letter from the North Dakota Department of Human Services.
Although the borrower is not required to make payments while they are in their internship, it is to their advantage to do so. By making payments, or by paying some of the interest, they will reduce the total amount that they have to pay throughout the life of the loan. Any interest the borrower does not pay will be capitalized (added to their principal balance) when their loan enters repayment.
- Most loans are placed on a 10-year repayment plan unless another option is chosen. See other repayment plans here.
- Loans that become 15 days delinquent will be assessed a late charge not to exceed six percent of the monthly payment amount or a maximum of $15, whichever is less.
- All loans are reported to the credit bureau monthly. Loans that are 31 days delinquent or greater will be reported as late.
- Sign up for automatic payments by submitting this form or contact us and:
- Decrease the interest rate by 0.25% when loan is in repayment status
- Choose a payment due date from the 1st through the 28th of the month
- Avoid late fees
- Build a positive credit history
If you are having difficulty repaying the loan you cosigned, contact us immediately. We can help review your current situation and discuss the options available.
To be released as the cosigner from a loan, each of the following requirements must be met:
- The borrower must meet BND’s current credit and eligibility criteria.
- The borrower must reside in the United States.
- Twenty-four (24) consecutive, regular on-time payments must have been made to BND.
- A regular on-time payment is a payment received within 15 days of the due date while in repayment status. This does not include payments made during forbearance or deferment periods.
- The payment counter restarts if there is a period of reduced payments, deferment, forbearance or a payment is received more than 15 days past the due date.
- The borrower must submit the Addiction Counselor Internship Loan Request for Release of Cosigner form.
A cosigner may be replaced at any time with a different creditworthy cosigner. Contact us for more information.
The Addiction Counselor Internship Loan is a private educational loan through the state of North Dakota and is not part of the federal student loan program. This loan is not eligible for the Federal Student Loan Consolidation Program. However, borrowers may refinance this loan with other student loans through the DEAL One or DEAL Consolidation loan programs.