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 October 1, 2021 through December 31, 2021
DEAL Consolidation Loan (Non-ND Rates)
These interest rates are available October 1, 2021 through December 31, 2021
Loan Fee Fixed Interest Rate Fixed APR* Variable Interest Rate** Variable APR*
3.75% 4.76% 5.56% 2.62% 3.39%
DEAL Consolidation Loan (Non-ND Rates)
These interest rates are available October 1, 2021 through December 31, 2021
Loan Fee 3.75%
Fixed Interest Rate 4.76%
Fixed APR* 5.56%
Variable Interest Rate** 2.62%
Variable APR* 3.39%
* 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 4.76% or variable interest rate of 2.62%, a loan fee of 3.75% and a 10-year repayment term. ** The variable interest rate will never exceed 10.00%. 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 create an account during the application process. Smart Money 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?
      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 2: Payoff verification documents – Borrower's responsibility

BND will verify the payoff information for the loans you have listed on the application. You will need to upload a payoff verification document for each loan listed on the application. This document must list the name of the lender, the lender payment address, your name, your account number, the current interest rate for each loan and the payoff amount as of a specific date. This information can be requested by contacting the lender directly.

Step 3: 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 4: 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 and Promissory Note. 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 listed on the disclosure.

Step 5: 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 for 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 6: Payoffs are made to your lender(s) – BND's responsibility

Payoffs made to most lenders/servicers typically take up to 10 business days to reflect on your account with them. Payoffs to your BND loans, will take approximately three (3) business days to your reflect on your account.

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.
  • 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 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 (You will be asked during the application if you would like to include all loans from credit report, or you can manually enter the loans.)
  • Social security number
  • Driver’s license number
  • Two personal references (living at two 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. 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.

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 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 Consolidation 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 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.
Smart Money Tip

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.

Watch a short video about cosigning a student loan.

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 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 loan you cosigned

  • Loan repayment terms are based on the total amount being consolidated.
  • 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.
  • 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.

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. If you have any questions, contact us or call 701.328.5660 or 833.397.0311.

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