Bank of north dakota consolidating student loans
as federal loans still offer some features that the state program doesn’t, including income-based repayment plans and loan forgiveness options.
If you’re a native of North Dakota or have lived there at least six months and are coping with onerous student loans, the state-owned bank of North Dakota has a great DEAL for you.
The new DEAL program offers a variable annual percentage rate, which is at 1.73 percent through June 30, or a 5.34 percent fixed APR.
Rate increases are capped at no more than 1 percent annually, and the rate can't exceed 10 percent under the program."We think that's going to provide some protection," Hardmeyer said.
But North Dakota is still a comparative bargain to schools in other US states.
As authorized by state lawmakers last year, the bank offered the program to physicians and others in the medical community in cities of 4,500 people or less as a way to make sure it could accommodate the potential increase in loans, Hardmeyer said, adding he's confident the bank will be able to handle the load. Jack Dalrymple, chairman of the three-member Industrial Commission that oversees the Bank of North Dakota, called it "the missing piece" in the student aid program.
He said the state's needs-based and merit-based scholarship programs have grown, "but we still have the problem of old loans, many of them at difficult interest rates.
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So, it's a great deal."Hardmeyer noted the program may not be right for everyone, as federal loans still offer some features the state program doesn't, including income-based repayment plans and loan forgiveness options.