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.
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. Borrowers and cosigners must be U.S. citizens.
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 effective April 1 through June 30, 2023. |
|||||
| Student/College Information | Loan Fee | Fixed Interest Rate | Fixed APR* | Variable Interest Rate** | Variable APR* |
|---|---|---|---|---|---|
| ND student attending a ND college | 0% | 6.29% | 5.94% | 6.44% | 6.07% |
| ND student attending an out-of-state college | 0% | 6.29% | 5.94% | 6.44% | 6.07% |
| Out-of-state student attending a ND college | 0% | 6.29% | 5.94% | 6.44% | 6.07% |
| DEAL Student Loan (ND Rates) These interest rates are effective April 1 through June 30, 2023. |
|
| Student/College Information | ND student attending a ND college |
|---|---|
| Loan Fee | 0% |
| Fixed Interest Rate | 6.29% |
| Fixed APR* | 5.94% |
| Variable Interest Rate** | 6.44% |
| Variable APR* | 6.07% |
| Student/College Information | ND student attending an out-of-state college |
| Loan Fee | 0% |
| Fixed Interest Rate | 6.29% |
| Fixed APR* | 5.94% |
| Variable Interest Rate** | 6.44% |
| Variable APR* | 6.07% |
| Student/College Information | Out-of-state student attending a ND college |
| Loan Fee | 0% |
| Fixed Interest Rate | 6.29% |
| Fixed APR* | 5.94% |
| Variable Interest Rate** | 6.44% |
| Variable APR* | 6.07% |
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. Start your FAFSA application now! Smart Money Tip
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. Smart Money Tip
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. 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. Before taking Federal PLUS loans, compare the interest rate and fees to BND’s student loan. You may save money. 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 create an account during the application process. Smart Money Tip
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. Smart Money Tip
Step 5: Loan Configuration – BND sends email to borrower and cosigner (if applicable) to select interest rate
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
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.
After you complete this step, the application will be sent to the school for certification. Smart Money Tip
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. Smart Money Tip
Step 8: Loan Final Disclosure – Borrower receives disclosure with option to review it and reduce receipt period days
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 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. Smart Money Tip
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. 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.
- 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 $5.
- All loans are reported to consumer reporting agencies monthly. Loans that are 30 days delinquent or greater will be reported as late.
- Sign up for automatic payments through your online account or you can also submit this form or contact us
- Decrease your interest rate by 0.25%
- Choose your payment due date
- Set payment withdrawal date to fit what works best for you
- 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
- Loan amount you are requesting
- 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. If you are still unsure about the status of your loan, please email BND or call 833.397.0311 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
- 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. - 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 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.
- 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 $5.
- All loans are reported to consumer reporting agencies monthly. Loans that are 30 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.
Cosigner release
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.
- 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.
- For DEAL Consolidation or DEAL One Loans disbursed on/after January 1, 2013, 48 consecutive, regular on-time payments are required.
- For DEAL Consolidation Loans disbursed prior to January 1, 2013, 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.
- The borrower must submit the DEAL Program Loan Request for Release of Cosigner form.
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, you will log in to Campus Connection 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, contact us or call 701.328.5660 or 833.397.0311.
NMLS# NDER412611