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Ext. 5763
Dakota Education Alternative Loan (DEAL)
A Dakota Education Alternative Loan (DEAL) provides additional financial
support to students who are unable to obtain adequate funds through federal
student aid programs. The DEAL loan is funded by Student Loans of North
Dakota (SLND) at Bank of North Dakota (BND) and guaranteed by SLND.
There is also a special program for medical students called Medical DEAL that covers all types of medical degrees, not just those seeking to be
a doctor of medicine.
What are the fees and interest rates?
The DEAL loan has no hidden costs or back-end fees. You may choose a fixed or variable interest rate loan.
If you choose a fixed rate, the interest rate will be set on the day your loan is first disbursed and remains the same until the loan
is paid in full. If you choose a variable rate, the interest rate decreases or increases throughout the life of the loan. The interest rate
has no minimum or maximum limit.
The current fixed interest rate of 6.58% is effective through June 30, 2008 and was calculated using the Federal
Home Loan Bank (FHLB) 10 Year Advanced Rate of 4.58% plus 2% as posted
by Federal Home Loan Bank - Des Moines on March 26, 2008 at 9:00 a.m. CT.
The current variable interest rate of 4.17% is effective through June 30, 2008 and was calculated using the 3 Month
LIBOR of 2.67% plus 1.5% as posted by Bloomberg on March 26, 2008 at 9:00
a.m. CT. (A .25% interest rate reduction will be given if
the borrower or cosigner utilizes the ACH payment method.)
DEAL loans are part of a North Dakota state alternative loan program and
not part of the federal student loan program. The loans are not eligible
for the Federal Student Loan Consolidation Program. However, BND will combine
all DEAL loans into one monthly payment.
How do I know if I qualify for a DEAL loan?
- You must be a United States citizen attending an eligible school. Students
must make satisfactory academic progress and must not have any other loans
in default.
- The school certifies current enrollment or acceptance for enrollment, academic
progress and student eligibility.
- You can be taking one class or a full load and qualify for a DEAL loan.
Students enrolled at least half-time must have applied for subsidized or
unsubsidized Stafford loans available under federal loan programs.
- High school students participating in dual credit programs may qualify
for the DEAL.
- The minimum amount you may borrow is $500. The maximum amount that can be borrowed is equal to the
cost of attendance as determined by the school for the loan
period, minus all other financial aid.
- You, or a cosigner, must meet specific credit criteria. Third- and fourth-year
medical students are exempt from this requirement.
When do I begin to repay my DEAL loan?
The student may pay the loan interest while attending school, but is not
required to make payments until after graduation, or when the student drops
below a half-time enrollment status. The student receives a six month grace
period before the loan enters repayment. Students who receive a DEAL loan
while enrolled less than half-time will not receive a grace period. You
have 10 years to repay a DEAL loan and medical students have up to 15 years
to repay.
Deferments are available and are similar to the deferments offered through the current FFELP and FDSLP.
A cosigner release option is available after 24 on-time payments. To qualify,
the borrower must be creditworthy, in repayment on the loan(s), and have
made 24 consecutive on-time regular payments.
Where can I get a DEAL application? *
Get your loan processed faster! "Apply Online" now for a DEAL or Medical DEAL loan!
If you prefer to complete a paper application, download the Borrower DEAL
Application and Promissory Note, Cosigner Credit Application and Promissory
Note, and DEAL Loan Request Form below. The college will be asked to certify
the student's current enrollment or acceptance for enrollment, academic
progress, and eligibility. You may also contact SLND - Bank of North Dakota
at 1-800-472-2166 ext. 5763 or ask your financial aid office for a DEAL
application.
Download the Borrower Deal Application and Promissory Note
Download the Cosigner DEAL Credit Application and Promissory Note
Download the DEAL Loan Increase Request Form
Download the DEAL Loan Request Form
What is required to complete a DEAL application request?
- A completed Borrower Application and Promissory Note
- A completed Cosigner Credit Application and Promissory Note
- A completed Loan Request Form
Follow the instructions for the DEAL and Medical DEAL Loan Application Process.
To apply for a Medical DEAL, follow the same instructions given above for
the DEAL loan. *
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