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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Borrower: 

  • If you are not an existing BND student loan customer, your state of legal residence OR the location of the school you are attending must be located in North Dakota, South Dakota, Minnesota, Montana, Wyoming or Wisconsin.
  • You must be at least 16 years of age. 
  • You must not be delinquent or in default on a student loan. 
  • You must be attending an eligible school. 
  • The school must certify that you are meeting satisfactory academic progress and certify your enrollment eligibility and status.
  • You must complete the Free Application for Federal Student Aid (FAFSA) process if you will be attending school at least half-time.
  • You are a North Dakota high school student participating in a dual credit program. 
  • Your credit will be evaluated to determine if the application can be approved. A creditworthy cosigner is required if you do not meet BND’s credit criteria. 

 Cosigner: 

  • You must be at least 18 years of age. 
  • You must be a U.S. citizen. 
  • You must not be delinquent or in default on a student loan. 
  • Your credit will be evaluated to determine if the application can be approved. 

Generally, there is a $60,000 maximum loan limit for undergraduate students and a $60,000 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. If you apply for a loan that will exceed these limits, you will be asked for additional information so we can determine if we can make an exception. 

 

DEAL Student Loan (ND Rates)
These interest rates are effective January 1 through March 31, 2024.
DEAL Student Loan (ND Rates)
These interest rates are effective January 1 through March 31, 2024.
Student/College Information Loan Fee Fixed Interest Rate Fixed APR* Variable Interest Rate** Variable APR*
ND student attending a ND college 0% 6.43% 6.06% 6.86% 6.44%
ND student attending an out-of-state college 0% 6.43% 6.06% 6.86% 6.44%
Out-of-state student attending a ND college 0% 6.43% 6.06% 6.86% 6.44%
DEAL Student Loan (ND Rates)
These interest rates are effective January 1 through March 31, 2024.
Student/College Information ND student attending a ND college
Loan Fee 0%
Fixed Interest Rate 6.43%
Fixed APR* 6.06%
Variable Interest Rate** 6.86%
Variable APR* 6.44%
Student/College Information ND student attending an out-of-state college
Loan Fee 0%
Fixed Interest Rate 6.43%
Fixed APR* 6.06%
Variable Interest Rate** 6.86%
Variable APR* 6.44%
Student/College Information Out-of-state student attending a ND college
Loan Fee 0%
Fixed Interest Rate 6.43%
Fixed APR* 6.06%
Variable Interest Rate** 6.86%
Variable APR* 6.44%
* The Annual Percentage Rate (APR) is different from the actual interest rate if there are loan fees. The APR includes the loan fee and reflects the cost of your loan as a yearly rate. The APR calculation assumes a loan of $10,000, two disbursements 120 days apart, a fixed interest rate of 6.43% or a variable interest rate of 6.86%, a loan fee BND pays for you 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. **The variable interest rate will never exceed 10.00%. 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

After submitting the FAFSA, you will receive an offer of financial aid that details if you qualify for any federal or state grants and your federal student loan options. BND offers another student loan option, and it also requires the FAFSA be completed each school year. While some people feel they don’t need to fill out the FAFSA because they make too much money and won’t qualify for financial aid or free money (grants), almost everyone will qualify for some type of federal student loan. Start your FAFSA application now!

Step 2: Receive an offer of financial aid – School's responsibility

Most schools will provide you with an offer of financial aid 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 offer from more than one school. This is a great tool to help you understand the funding you will need for your education.

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

Follow the instructions on your offer of financial aid to take advantage of the funding options you have been offered. BND encourages you to use federal Direct Subsidized and Unsubsidized Student Loans first, if needed, because of the unique federal benefits not found in other student loan options. If you need additional funds after using federal student loan programs, grants, scholarships and savings, a BND DEAL Student Loan can help you fill the gap. Before taking federal PLUS loans, compare the interest rate and fees to BND’s Student Loan. You may save money.

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 create an account during the application process. Make the application process faster by having the following student information ready: Loan amount you are requesting, school you are attending, Social Security Number, driver’s license number and two personal references (must have different addresses).

Why would I need a cosigner?

The DEAL Loan is a credit-based loan. You can choose to apply with or without a cosigner, but if you do not meet BND’s credit criteria, you can re-apply with a cosigner.

How does a cosigner apply?
You will need to select Applying with a Cosigner on page 1 of your application, then on page 5 you will enter the cosigner’s name and email address. They will receive an email with a cosigner PIN and instructions on how to complete the application. If they are a new customer, the application will take them through the process of creating an account. The cosigner can make the application process faster by having the following information ready: PIN (this is emailed to them), student’s last name and date of birth, their Social Security Number, their driver’s license number and two personal references for them (must have different addresses).

Step 5: Loan Configuration – BND sends email to borrower and cosigner (if applicable) to select interest rate – BND and Borrower's responsibility

After your application has been approved, BND will send you an email asking you to configure your loan. This is where you will select between the variable and fixed interest rate options. To do this, you will log into your online account to make your selection.

Step 6: Loan Documentation – BND sends email to borrower and cosigner (if applicable) to sign documents – BND, Borrower's and Cosigner’s responsibility

Once you configure your loan, you will be asked to eSign the Loan Approval Disclosure, Promissory Note and Borrower Self-Certification. If you have a cosigner, they will receive an email requesting they log into their online account to eSign the Loan Approval Disclosure and Promissory Note.

These documents 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 Borrower Self-Certification. If you have questions call BND at 833.397.0311; otherwise, return the documents right away. Your loan is on hold until BND receives both signed documents.

After you complete this step, the application will be sent to the school for certification.

Step 7: School Certification Request – BND and school's responsibility

BND will request that your school verify your information in the application and approve your eligibility for your loan request.

Step 8: Loan Final Disclosure – Borrower receives disclosure with option to review it and reduce receipt period days – Borrower's responsibility

The Loan Final Disclosure is the last step, and your final opportunity to cancel your application before it becomes a loan. If you want the loan, no further action is required on your part; however, you do have the option to review your final disclosure and waive two of the three business days, including Saturdays, of your final disclosure receipt period. You can do this by logging into your online account to view the disclosure. After the final disclosure receipt period lapses, your loan will begin the three business day waiting period for your legal right of refusal of the loan. Your loan will automatically be distributed after the required waiting period has passed. Your online account will list the date your loan funds will be sent to your school.

Step 9: Funds are sent to your school – BND's responsibility

Loan funds are sent directly to your school. The school will schedule the disbursement dates during the school certification request process.

If you don’t need all of the loan funds, return any extra money to BND and keep your student loan debt as low as possible.

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.

  • Loans are placed on a 10-year repayment plan (view sample loan payment plan) unless you choose another option. If you apply for a consolidation loan or have a total student loan balance of $30,000 or more, you may qualify for an extended repayment plan. See other repayment plans here.
  • Loans that become 15 days delinquent will be assessed a late fee not to exceed 6% of the unpaid portion of the installment or a maximum of $5.00.
  • All loans are reported to consumer reporting agencies monthly. Loans that are 30 days delinquent or greater will be reported as late.
  • Automatic payments can be set up through the BND online portal. This can be updated by selecting Manage Recurring Payments under the Useful Links to the right of each loan. Alternatively, you can complete the Authorization for Automatic Payments form or call our office to have one of our representatives assist you. By signing up for automatic payments, you can: 
    • Decrease your interest rate by 0.25%
    • Choose a 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 us 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

  • Requested loan amount
  • School you are attending
  • Social Security Number
  • Driver’s license number
  • Two personal references (must have different addresses and cannot be your cosigner, if applicable)

Cosigners

  • Cosigner PIN (emailed to the cosigner after the borrower completes page 5 of the application)
  • Student’s last name and date of birth
  • Cosigner’s Social Security Number
  • Cosigner’s driver’s license number
  • Two personal references for cosigner (cannot be the same references as the borrower listed; cannot be the borrower)

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. When your loan is approved, you will also receive an email from BND letting you know the next steps you need to take. 

If you are still unsure about the status of your loan, we would be happy to assist you. You can email us, call us at 833.397.0311 or chat with us using the link in the lower right corner.

How long does the loan process take?

The process length varies. We recommend you apply at least four to six weeks prior to the tuition deadline, although the loan may be processed quicker than that. Here are some items you can do to help speed up the process:

  • Upload and return documents promptly when requested by BND.
  • Stay up to date on your application process using your portal account and take the associated steps when contacted by BND to ensure your loan application is processed as quickly as possible.
  • Log in to your account when your loan final disclosure is available. View it and waive two of the three business days of your final disclosure receipt period.

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 the borrower does not. The cosigner is equally liable for repayment of the loan in the event that payments are not made.

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.

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 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 studentloans@nd.gov with a link to apply.
  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. 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. 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 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 the borrower is 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.

  • Loans are placed on a 10-year repayment plan (view sample loan payment plan) unless another option is chosen. If you apply for a consolidation loan or have a total student loan balance of $30,000 or more, you may qualify for an extended repayment plan. See other repayment plans here.
  • Loans that become 15 days delinquent will be assessed a late fee not to exceed 6% of the unpaid portion of the installment or a maximum of $5.00.
  • All loans are reported to consumer reporting agencies monthly. Loans that are 30 days delinquent or greater will be reported as late.
  • Automatic payments can be set up through the BND online portal. This can be updated by selecting Manage Recurring Payments under the Useful Links to the right of each loan. Alternatively, you can complete the Authorization for Automatic Payments form or call our office to have one of our representatives assist you. By signing up for automatic payments, you can: 
    • 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 submit the DEAL Program Loan Request for Release of Cosigner form. 
  • The borrower must meet BND’s current credit and eligibility criteria in effect at the time the request is made.
  • The borrower must reside in the U.S.
  • The appropriate number of consecutive, regular on-time payments must have been made to BND.
    • For DEAL Student Loans, 24 consecutive, 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 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.

Thank you for working with BND for the benefit of your students. Please refer to the steps for getting a loan to view the DEAL application process.

Roster information is available! To access your school’s information, you will log in to Campus Connection Center and click on “Disbursement Roster” under the Reports tab.

Note that if you wish to make changes to the disbursement, BND will require a five-day notice prior to the disbursement date.

Feel free to contact us if you have any questions or if we can be of assistance.

How to apply

Apply online by clicking “Apply now” below. If you have any questions, call 701.328.5660 or 833.397.0311, or start a live chat using the link in the lower right corner.

 

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