DEAL Student Loan

The DEAL Student Loan can help you cover the cost of attending college if federal loans, grants, scholarships and savings don’t meet funding needs. It can be used for undergraduate and graduate classes. If you are a North Dakota resident, it may be used for approved in-state and out-of-state schools. If you are an out-of-state resident attending a North Dakota school, you do not pay fees and may choose a fixed or variable interest rate.

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You qualify for a DEAL Student Loan if:

  • You are a U.S. citizen attending an eligible school making satisfactory progress in an accredited program and do not have any loans in default.
  • You will attend school more than half-time and have completed the FAFSA. If you attend less than half-time, you do not need to complete the FAFSA.
  • The school certifies your current enrollment, acceptance for enrollment, academic progress and eligibility.
  • You are a North Dakota high school student participating in a dual credit program.
  • You, or a creditworthy cosigner, meet specific credit criteria.

Generally, there is a $50,000 maximum loan limit for undergraduate students and a $50,000 maximum loan limit for graduate students. The minimum student loan amount is $500. You may not borrow more than your school certifies you will need.

DEAL Student Loan (ND Rates)
These interest rates are available October 1, 2017 through December 31, 2017
DEAL Student Loan (ND Rates)
These interest rates are available October 1, 2017 through December 31, 2017
Student/College Information Loan Fee Fixed Interest Rate Fixed APR* Variable Interest Rate Variable APR*
ND student attending a ND college 0% 4.78% 4.78% 2.82% 2.82%
ND student attending an out-of-state college 0% 4.78% 4.78% 2.82% 2.82%
Out-of-state student attending a ND college 0% 4.78% 4.78% 2.82% 2.82%
DEAL Student Loan (ND Rates)
These interest rates are available October 1, 2017 through December 31, 2017
Student/College Information ND student attending a ND college
Loan Fee 0%
Fixed Interest Rate 4.78%
Fixed APR* 4.78%
Variable Interest Rate 2.82%
Variable APR* 2.82%
Student/College Information ND student attending an out-of-state college
Loan Fee 0%
Fixed Interest Rate 4.78%
Fixed APR* 4.78%
Variable Interest Rate 2.82%
Variable APR* 2.82%
Student/College Information Out-of-state student attending a ND college
Loan Fee 0%
Fixed Interest Rate 4.78%
Fixed APR* 4.78%
Variable Interest Rate 2.82%
Variable APR* 2.82%
* There is no difference between the interest rate and the Annual Percentage Rate (APR) because there are no fees for North Dakota residents or non-North Dakota residents attending a college in North Dakota. BND pays the fee for you. The APR calculation assumes a loan of $10,000, two disbursements 120 days apart, a fixed interest rate of 4.78% or a variable interest rate of 2.82%, a loan fee of 0% and a 10-year repayment term. The APR calculation also assumes that no payments are made by the consumer until 4.5 years (estimated in-school/grace period) after the first disbursement is made. Interest that accrues during in-school and grace periods (if not paid) is added to the balance when the loan enters repayment. Learn more about fixed and variable interest rates.

You do not pay any fees for a DEAL Student Loan when you are a North Dakota resident or an out-of-state resident attending a North Dakota school. BND pays the fee for you.

Step 1: Complete the Free Application for Federal Student Aid (FAFSA) – Borrower's responsibility

Why do you need to complete the FAFSA? Completing and submitting a FAFSA is a way to make sure you are provided federal and state grants and loan options. BND requires the FAFSA be completed each school year so you are able to make the best financial decisions on how to fund your education. Start your FAFSA application now! Smart Money Tip

Step 2: Receive a student aid award letter – School's responsibility

Most schools will provide you with an award letter that will outline what financial aid options you qualify for based on your completion of the FAFSA. If you listed more than one school on your FAFSA, you may receive an award letter from more than one school. This is a great tool to help you understand the funding you will need for your education. Smart Money Tip

Step 3: Accept school awarded aid – Borrower's responsibility

Follow the instructions on your award letter to take advantage of the funding options you have been offered. If you need additional funds after using federal student loan programs, grants, scholarships and savings, a DEAL Student Loan can help you fill the gap. Smart Money Tip

Step 4: Apply for a DEAL Student Loan (a cosigner may be needed) – Borrower's responsibility

You can complete BND’s simple online application. If you are a new customer, you will need to create an account before starting the application. Smart Money Tip

Why would I need a cosigner?
The DEAL Loan is a credit-based loan. This means that if you do not meet BND’s credit criteria, you will need to find a creditworthy cosigner.

How does a cosigner apply?
A cosigner token will be provided after you complete your DEAL application. If a cosigner is needed, they will need this token to start their cosigner application. The cosigner will need to create an account and select the “Cosign a Loan” option. To start the cosigner application, they will need to input the student’s last name, student’s date of birth and the cosigner token. Smart Money Tip

Step 5: School Certification Request – BND will send to the school and the school must return to BND

When the borrower application is completed (cosigner application if needed) and credit is approved, BND will contact your school asking them to certify your loan request. On a school certification, the school will verify that you are enrolled in classes, the loan amount you will need and what dates to send the loan funds to them.
Smart Money Tip

Step 6: Loan Approval Disclosure and Borrower Self Certification – BND will send to the borrower and the borrower must return to BND

BND: Once BND has received the completed school certification from your school, BND will send you a Loan Approval Disclosure and a Borrower Self Certification.

Borrower: The Loan Approval Disclosure and Borrower Self Certification are time sensitive and need to be signed and returned before the last date of acceptance listed on the documents. Click here to see an example of the Loan Approval Disclosure. Click here to see an example of the Borrower Self Certification.

Once BND receives both signed documents, your loan request will be updated and a Loan Final Disclosure will be sent to you the following business day. Smart Money Tip

Step 7: Loan Final Disclosure – BND's responsibility

The Loan Final Disclosure is the last step in the loan process and it gives you another opportunity to cancel your loan without any penalty. Click here for an example of a Loan Final Disclosure. If you want the loan, no further action is required on your part. Your loan funds will automatically be sent to your school as soon as the required waiting period has passed. Smart Money Tip

Step 8: Funds are sent to your school – BND's responsibility

Loan funds are sent directly to your school – generally in two disbursements. Smart Money Tip

You must begin repaying your loan six months after you graduate, leave college or start attending less than half-time. Consider signing up for monthly or quarterly automatic payments while you are in college. Even if the payments are small, this can reduce the total amount you will need to pay over the life of the loan.

  • Most loans are placed on a 10-year repayment plan (view disclosure) unless you choose another option. See other repayment plans here.
  • The minimum monthly payment is $50.
  • Loans that become 15 days delinquent will be assessed a late fee not to exceed six percent of the unpaid portion of the installment or a maximum of $15.
  • All loans are reported to the credit bureau monthly. Loans that are 31 days delinquent or greater will be reported as late.
  • You can sign up for automatic payments and:
    • Decrease your interest rate by 0.25% when loan is in repayment status
    • Choose your payment due date from the 1st through the 28th of the month
    • Avoid late fees
    • Build a positive credit history on your loan

If you have difficulty repaying your loan, contact BND immediately. We can help review your current situation and discuss the options available.

What information should I have available to complete a DEAL Loan Application?

Students

  • Loan amount you are requesting
  • School you are attending
  • Social Security Number
  • Driver’s license number
  • Three personal references (must have different addresses)

Cosigners

  • Token (student received during the application process and can access it on their online account)
  • Students last name and date of birth
  • Cosigner’s social security number
  • Cosigner’s drivers license number
  • Three personal references for cosigner (must have different addresses)

What is the difference between a fixed and variable interest rate?

A fixed interest rate is set on a specific date and remains the same until your loan is paid in full. A variable interest rate can change based on changes to an “index.” See BND’s fixed and variable interest rate options here.

What is the difference between APR and interest rate?

The interest rate is the rate of interest you will pay on the loan for borrowing the funds. The Annual Percentage Rate (APR) reflects not only the interest rate but also the fees or other charges that you have to pay to get the loan. Looking at the APR is the most accurate way to compare different loan offers.

How will I know if my loan is approved?

Log in to your online account and view your application status. It will state “Credit approved” or “Credit Denied, Need Credit Worthy Cosigner.” Click here for an example. If you are still unsure about the status of your loan, please email BND or call us at 701.328.5660 and we would be happy to assist you.

How long does the loan process take?

The biggest factor is how quickly documents are returned to BND. Check out “Steps to getting a loan” above.

What is a credit score?

Credit scores are numbers used by lenders to help them determine how likely it is that you will repay your debt. BND uses Experian FICO scores as one of the factors in our credit criteria for obtaining a DEAL Loan. If you do not meet BND’s credit criteria, you will need to find a creditworthy cosigner.

The range of a credit score is 300 to 850. Most people’s credit scores fall between 600 and 750.

What is a cosigner?

A cosigner is a person who pledges to pay back the loan if you do not. If you do not make payments when required, your cosigner will be liable for repayment of the loan.

How does cosigning a loan affect the cosigner’s credit?

Cosigning for a loan is an action that should never be taken lightly, as it can have very serious implications for the cosigner’s credit history. As the cosigner, the cosigned loan will appear on their credit report and can directly affect their credit as a debt owed.

Ideally, you are reliable, never late and will never miss a payment. Your cosigner’s willingness to risk their credit helps you get the loan and can help you build a positive credit history. If you do not make payments, your cosigner is responsible for paying back the debt. The unpaid debt will appear on their credit report, seriously damaging their credit and perhaps their ability to qualify for new credit. If left unpaid, it could also lead to collection accounts and further damage their creditworthiness.

How do I improve my credit score?

Always pay your bills on time. Keep your credit card balances low and limit the number of credit accounts you have open. For instance, it may be tempting to open up a credit card for each of your favorite stores to get that one-time discount, but that can lower your credit score because you could potentially charge too much and not be able to pay your bills. In addition, every time your credit is pulled or checked, it can lower your overall credit score.

When will my funds be disbursed?

Your loan funds will automatically be sent to your school as soon as the required waiting period has passed. For exact disbursement dates, please refer to your online account.

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

  1. How does a cosigner apply?
    The borrower received a token after completing the loan application. You will need this token to start the cosigner application. Create a new account unless you already have one and select the “Cosign a Loan” option. To start the cosigner application, you will need to input the borrower’s last name, borrower’s date of birth and the cosigner token. Smart Money Tip
  2. 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. Click here to see an example of this document. Smart Money Tip
  3. 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. Click here for an example of a Loan Final Disclosure. If you want to continue as the cosigner of the loan, you do not need to do anything.

Repaying your loan

Repayment of the loan you cosigned begins six months after the borrower graduates, leaves college or starts attending less than half-time. Consider signing up for monthly or quarterly automatic payments while you are in college. Even if the payments are small, this can reduce the total amount you will need to pay over the life of the loan.

  • Most loans are placed on a 10-year repayment plan unless another option is chosen. See other repayment plans here.
  • The minimum monthly payment is $50.
  • 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.
  • You can sign up for automatic payments 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.

Cosigner release

 To be released as the cosigner from a loan, each of the following requirements must be met:

  • The borrower must be found creditworthy based on the credit criteria in effect at the time the request is made.
  • The appropriate number of consecutive, regular on-time payments must have been made to BND.
    • For DEAL Student Loans, 24 regular, on-time payments are required.
    • For DEAL Consolidation or DEAL One Loans disbursed on/after January 1, 2013, 48 regular, on-time payments are required.
    • For DEAL Consolidation Loans disbursed prior to January 1, 2013, 24 regular, on-time payments are required.
  • 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, deferment or income sensitive repayment periods.
  • The payment counter restarts if there is a period of reduced payments, income sensitive, deferment or forbearance or a payment is received more than 15 days past the due date
  • The borrower must submit the DEAL Request for Release of Cosigner form.

A cosigner may be replaced at any time with a different creditworthy cosigner. Contact us for more information.

How to apply

Apply online by clicking “Apply now” below. Click “Login/Create Account” then “Apply Online” on the left side of the screen. If you prefer to complete a paper application, click on the Forms tab above.

If you have any questions, contact us or call 701.328.5660.

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