DEAL Consolidation Loan

The DEAL Consolidation Loan is for non-North Dakota residents who have a DEAL Student Loan. This program allows you to refinance your DEAL Student Loans along with any other private/alternative student loans you have with other lenders into one new loan.

If you do not live in North Dakota but you have a DEAL Student Loan, you are eligible to participate in the DEAL Consolidation Loan Program. Other requirements include:

  • You, or a creditworthy cosigner, must meet specific credit criteria
  • You must be a U.S. citizen
  • Your loans must be in grace or repayment status to be eligible
  • Your loans cannot be delinquent or in default

The following loans can be consolidated into one new loan:

  • DEAL Student Loans
  • Private/alternative student loans you have with other lenders

Federal student loans are not eligible to be refinanced through the DEAL Consolidation Program.

There are currently no loan limits. Credit criteria and eligibility requirements vary depending on the loan amount you are requesting.

DEAL Consolidation Loan (Non-ND Rates)
These interest rates are available through December 31, 2016
DEAL Consolidation Loan (Non-ND Rates)
These interest rates are available through December 31, 2016
Loan Fee Fixed Interest Rate Fixed APR* Variable Interest Rate** Variable APR*
3.75% 5.36% 6.16% 3.35% 4.13%
DEAL Consolidation Loan (Non-ND Rates)
These interest rates are available through December 31, 2016
Loan Fee 3.75%
Fixed Interest Rate 5.36%
Fixed APR* 6.16%
Variable Interest Rate** 3.35%
Variable APR* 4.13%
* The Annual Percentage Rate (APR) is different from the actual interest rate because the APR considers fees and reflects the cost of your loan as a yearly rate. The APR calculation assumes a loan of $10,000, a fixed interest rate of 5.36% or variable interest rate of 3.35%, a loan fee of 3.75% and a 10-year repayment term. ** The variable interest rate will never exceed 10%. Learn more about fixed and variable interest rates.

There is a 3.75% administrative fee for a DEAL Consolidation Loan.

Step 1: Apply for a DEAL Consolidation Loan. A cosigner may be needed. – Borrower's responsibility

You can complete our simple online application by clicking here. If you are a new customer, you will need to create an account before starting the application. Smart Move Tip

Continue to make payments on your student loans until you receive confirmation that they have been paid in full by the DEAL Consolidation Loan to avoid any negative effects to your credit rating.

    • Why would I need a cosigner?
      The DEAL Consolidation Loan is a credit-based loan meaning 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 Consolidation Loan application. If a cosigner is required, the token is required when starting the cosigner application. The cosigner will need to create an account and select the “Cosign a Loan” option. To start the cosigner application, the student’s last name, student’s date of birth and the cosigner token must be entered. Smart Move Tip

Step 2: Complete an Authorization for Release of Student Loan Information form – Borrower's responsibility

This form must be completed if you are including loans from other lenders. It gives your other lenders permission to provide BND information about your loans. Click here to complete this form.

Step 3: BND will review your loan application – BND's responsibility

When an application is complete, credit approved, and Authorization for Release of Student Loan Information form is received, BND will contact your other lenders to obtain the exact payoff information for your loans.

Step 4: Loan Approval Disclosure – BND will send to the borrower and the borrower must return to BND

BND: BND will send you a Loan Approval Disclosure as soon as it receives the the payoff information from your other lenders.

Borrower: The Loan Approval Disclosure is time sensitive and needs to be signed and returned before the last date of acceptance listed on the disclosure. Click here to see examples of the Loan Approval Disclosure. Smart Move Tip

When BND receives the required form, your loan will be updated and a Final Loan Disclosure will be sent the following business day.

Step 5: Loan Final Disclosure – BND's responsibility

The Loan Final Disclosure is the last step in the loan process and is your final 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. BND will distribute your loan to your other lenders as soon as the required waiting period has passed.
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Step 6: Payoffs are made to your lender(s) – BND's responsibility

On the date your loan is finalized, BND will apply loan payoffs to your BND loans and/or, if applicable, sent to your other lenders.

Repayment of the loan begins approximately 30 days after the loan is made.

  • 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 the 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

If you are having difficulty repaying your loan, contact us. We can review your current situation and discuss the options available.

What will I need to complete a DEAL Consolidation Loan application?

  • Information on all student loans to be included in the consolidation such as: Current lender’s name, account number, loan balance, loan type, interest rate Smart Move Tip
  • Social security number
  • Driver’s license number
  • Three personal references (living at three different addresses)

Why should I consolidate/refinance my student loans?

The terms consolidation and refinancing are often used interchangeably. The DEAL Consolidation Loan allows you to combine multiple student loans from BND and other private lenders into one loan. This means one payment to one lender. You may be able to lower your interest rate, extend your repayment term or change your interest rate type from variable to fixed, or vice versa.

This may decrease your monthly payment or you can choose to make higher monthly payments and save money by paying the loan off more quickly.

Is this program just for recent graduates?

No. The program is available to anyone who has a current DEAL Loan with BND and is not currently attending school.

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 the loan is paid in full. A variable interest rate can change based on changes to an “index.” Learn about BND’s fixed and variable interest rate options here.

What is the difference between Annual Percentage Rate (APR) and interest rate?

The interest rate is the rate of interest you will pay on the loan for borrowing the funds. The 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 APR is the most accurate way to compare different loan offers.

Can a married couple consolidate/refinance their loans together?

No. However, your spouse is eligible to be a cosigner on your loan.

How will I know if my loan is approved?

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

Do I need a cosigner?

A creditworthy cosigner is required if you do not meet BND’s credit criteria.

Can a cosigner be released?

To be released as the cosigner of 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 be made to BND:
    • For DEAL Consolidation 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.

How long does the application process take?

The biggest factor in determining the length of the loan process is how quickly documents are returned to BND.
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Check out “Steps for getting a loan” above.

When will my other loans be paid off?

Loan payoffs will be made directly to all of your lenders after BND has sent you the Final Loan Disclosure and the required time has passed.

You can see the “Steps for getting a loan” above.

What is a cosigner?

A cosigner is a person who pledges to pay back the loan if you do 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, as it can have very serious implications for 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 the borrower build a positive credit history. 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 Move 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 Move 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 the loan you cosigned

  • Loan repayment terms are based on the total amount being consolidated.
  • The minimum monthly payment is $50 (view disclosure example)
  • Loans that become 15 days delinquent will be assessed a late charge not to exceed 6 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%
    • 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 Program 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.

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. Smart Move Tip

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

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