BND Student Loans Explained: Rates, Repayment, and Eligibility

Bank of North Dakota, the nation’s first state-owned bank, established in 1919, offers BND student loans. These loans provide an option for students seeking funding for college expenses, including tuition, books, and living costs. Students who are North Dakota residents, attending an eligible school, and have completed the FAFSA can apply for these loans. Unlike many private loans, BND lends directly to students without relying on third-party banks, streamlining the process and reducing extra fees. The main products include DEAL student loans for new borrowing and the DEAL One Loan refinancing option, which allows students to combine existing loans into a single payment.

Overview of BND Student Loans

The Bank of North Dakota provides both private student loans and refinancing options. DEAL student loans can be used for various educational expenses, offering flexibility often limited in other loan programs. Loan amounts range from $500 to $50,000, and interest rates start at competitive fixed rates around 6.40 percent. Applicants must complete the Free Application for Federal Student Aid (FAFSA) and follow the BND application steps to submit required documents and confirm school eligibility.

Eligibility focuses on residency and school location. Students living in or attending eligible schools in North Dakota, South Dakota, Minnesota, Montana, Wyoming, or Wisconsin qualify, and all borrowers must be U.S. citizens with no defaulted loans. The program also allows refinancing existing student loans through the DEAL One Loan, which lets borrowers consolidate debt into a single payment and potentially lower monthly payments. For example, a student with multiple loans totaling $20,000 might refinance using DEAL One Loan to simplify repayment.

These loans stand out for their straightforward structure and support for students who want to manage their education costs without excessive complexity. DEAL student loans cover new borrowing, while DEAL One Loan focuses on refinancing, providing clear options for different student needs.

Loan Amounts and Terms

BND student loans through the DEAL program allow students to borrow between $500 and $50,000, depending on their educational needs. This range covers partial tuition or full costs for many programs. Students can combine scholarships, grants, or work-study with these loans to cover expenses that exceed the maximum amount.

Loan terms extend up to 25 years, allowing borrowers to select a repayment plan that fits their financial situation. Repayment typically begins after graduation, though borrowers can choose to make payments while in school. Longer terms reduce monthly payments, while shorter terms allow for faster debt repayment and lower total interest. Interest rates start around 6.40 percent fixed, and for example, a $10,000 loan over 10 years at this rate would have an approximate monthly payment of $115.

These loans can be used for tuition, room and board, books, or other educational expenses, providing students with flexibility that aligns with their college costs and helping them plan financing with clarity.

Interest Rates and Fees

DEAL student loans offer both fixed and variable interest rates. Fixed rates start at 6.40 percent, providing predictable monthly payments throughout the loan term. Variable rates begin at 6.48 percent and fluctuate with market conditions, which may increase or decrease monthly costs. Borrowers should consider how these changes could affect their budget when choosing between fixed and variable options.

An administration fee of 3.75 percent applies to the total loan amount. Still, this fee is waived for North Dakota residents and students attending eligible North Dakota schools, reducing overall borrowing costs.

Compared with other private student loans, BND’s rates remain competitive. The combination of fixed-rate stability, variable rate options, and potential fee waivers provides borrowers with transparent, manageable financing choices.

Repayment Options

BND student loans offer flexible repayment plans to accommodate different financial situations in school. Borrowers can make full payments, interest-only payments, or defer payments until after graduation. For example, a student with a $10,000 loan might pay approximately $115 per month with full payments while in school or $53 per month with interest-only payments, which cover only accrued interest and keep the principal unchanged.

Automatic payments provide a 0.25 percent interest rate reduction, which could save around $30 over a year on a $10,000 loan. Borrowers can also select the day of the month their payment is due for convenient budgeting. After making 24 consecutive on-time payments, cosigners may be released from loan responsibility, easing long-term obligations for families. For instance, if a cosigner supported a $15,000 loan, their liability ends after these on-time payments, while the student continues repayment independently.

These repayment structures help students complete their education without unnecessary financial stress while giving them practical tools to stay on track.

Student Loan Refinancing with BND

BND offers refinancing through the DEAL One Loan, allowing borrowers to consolidate existing private or federal student loans into a single loan. Eligible borrowers include those with multiple private loans, multiple federal loans, or a combination of both. This refinancing simplifies repayment and can reduce monthly payments. For example, a $20,000 combined loan refinanced at a 6.40 percent fixed rate could lower monthly payments from approximately $230 to $210.

The DEAL One Loan provides the same competitive interest rates as standard DEAL student loans, and borrowers who sign up for automatic payments receive a 0.25 percent rate reduction. To apply, students submit their existing loan information and confirm eligibility with BND. Unlike standard DEAL loans for new borrowing, DEAL One Loan focuses on refinancing existing debt, helping students streamline finances and manage repayment efficiently.

Borrowers may also compare BND refinancing with providers such as Earnest, ELFI, or Citizens Bank to evaluate different terms and rates. This approach ensures students make informed decisions based on their financial goals and repayment capabilities.

Pros and Cons

BND student loans offer several advantages for eligible borrowers. Competitive interest rates, flexible repayment options, and a small discount for automatic payments make the loans practical and manageable. Borrowers can choose repayment timing while in school, and cosigners may be released after consistent on-time payments, adding flexibility and reducing long-term obligations. Students living in or attending schools in North Dakota, South Dakota, Minnesota, Montana, Wyoming, or Wisconsin qualify for these loans. For example, a student living in Minnesota and attending a Wisconsin school can access BND loans, benefiting from lower rates than typical private loans.

However, these loans are not available to students outside these areas. While BND loans provide low rates and repayment flexibility, federal loans, grants, or scholarships may still be preferable for some students, depending on financial circumstances.

Alternative Student Loan Choices

Before committing to a BND student loan, it is important to compare other financing options. Federal student loans often provide income-driven repayment plans and potential forgiveness programs, which may benefit long-term financial planning. Students can apply for federal loans through the FAFSA website and explore available grants and scholarships using federal and state education portals. Grants and scholarships offer free funding and should always be explored to reduce borrowing needs.

Private refinancing through other lenders, such as Earnest, ELFI, or Citizens Bank, can also be considered when comparing interest rates and repayment terms. Even slight differences in rates can result in substantial savings over the life of a loan. Combining multiple strategies, including scholarships, grants, and careful loan selection, ensures that you minimize educational costs while maintaining manageable monthly payments.

Conclusion

BND student loans provide a practical option for students in eligible states seeking funding for college expenses or refinancing existing loans. With competitive interest rates, flexible repayment plans, and automatic payment discounts, these loans allow borrowers to manage their finances effectively while focusing on education.

Eligibility requirements focus on residency, school location, and good standing with previous loans, ensuring borrowers meet clear criteria. The DEAL One Loan refinancing option offers a pathway to consolidate multiple loans and simplify repayment.

By comparing BND loans with federal options, exploring scholarships, and considering other private lenders, students can make informed decisions to minimize costs and manage debt efficiently. For eligible students, BND loans offer transparency, flexibility, and practical support throughout repayment.

You can contact the BND (Bank of North Dakota) student loan department at (833) 397-0311 for any questions regarding your student loan, including repayment options. Alternatively, they can be reached by email at studentloans@nd.gov.

FAQs about BND Student Loans