BND Student Loans: Simple Guide
Student loans help pay for college when scholarships and free aid aren’t enough. The Bank of North Dakota (BND) offers loans for this. Here’s an easy guide (about 1,000 words) on how they work, plus, and what to watch out for.
What is BND?
BND is North Dakota’s state bank. It helps people in the state with money needs, like student loans.
They have two main loan types:
- DEAL Loans: Extra loans for college students (undergrad or grad) who go to school at least half-time. Use these after free aid and federal loans.
- DEAL One: Refinance old student loans to get better terms.
Key Loan Details
How much can you borrow?
$500 to $50,000 per year. Good for most schools, but not super expensive ones.
Interest rates?
Low and fair:
- Fixed rates start at 5.48%. (Stays the same.)
- Variable rates start at 3.79%. (Can go up or down.)
Variable is cheaper at first but riskier.
Fees?
About 3.75% fee. Free if you live in North Dakota or go to school there.
Who can get it?
- Live in North Dakota (or nearby states like Minnesota, Montana, South Dakota, Wisconsin).
- Go to school in North Dakota.
- Good credit, or a cosigner (like a parent) with good credit.
How to pay back?
Pick one:
- Pay full amount while in school.
- Pay just interest while in school.
- Wait 6 months after graduation to start.
Save 0.25% if you auto-pay from your bank.
Good Things About BND Loans
- Low rates: Cheaper than many private banks because it’s a state bank.
- Easy pay choices: Pay a little now or wait till later.
- Drop cosigner: After 24 on-time payments, cosigner is free.
- One easy spot: Check federal and BND loans in one place.
Bad Things to Know
- Only for some places: Must live or study in North Dakota area. Others can’t apply.
- Need good credit: No loan if credit is bad and no cosigner.
- Variable rates rise: Your payments could jump.
- No federal perks: Can’t get income-based pay or loan forgiveness like federal loans.
- Debt adds up: Don’t borrow more than you need. It grows with interest.
Should You Get a BND Loan?
Ask yourself these:
- Did you get all free money first? Fill FAFSA for grants and scholarships. Max federal loans too. BND says do this before them.
- Do you qualify? Check your home, school, and credit.
- Can you pay it back? Use online calculators. Guess your job pay after school.
- Which pay plan? Paying interest in school saves money long-term.
- What if no job? Private loans have less help than federal ones.
- Better deals? Compare other banks. BND has refinance, but shop around.
Step-by-Step Plan
- Start now: File FAFSA early. Hunt scholarships all year.
- Make a budget: Add up tuition, food, books, rent.
- Borrow just enough: After free aid, take only what’s left.
- Shop around: Check rates and fees at your school aid office and other lenders.
- Plan payments: Think about future job. Pay interest in school to save.
- After school: Auto-pay to save. Refinance later if you have good job and credit.
Why This Matters
College loans are like investing in your job future. But borrow smart:
- Go to school that fits your pay.
- Don’t borrow too much.
- BND is good (low rates, easy pay), but any loan can hurt if not planned.
Smart borrowing means you graduate debt-free or with easy payments.
Wrap-Up
BND’s DEAL and DEAL One loans are great for North Dakota folks. Low rates, flexible pay, state help.
But be careful:
- Get free aid first.
- Borrow little.
- Compare everything.
- Plan from day one.
Talk to your school aid office. Read all terms. Use calculators. Make sure the loan helps your life, not hurts it.
Want a side-by-side chart comparing BND to other big lenders (rates, fees, good/bad)? Just say yes.
