BND Student Loans
The price of a college education is perpetually on the rise. The College Board states it costs approximately $9,139 per year to attend a four-year in-state university for the 2014-2015 academic year. USA Today noted a 15 percent increase in the cost of college tuition between 2008 and 2010 alone. Likewise, attendance rates at colleges and universities across the nation are also increasing at a steadfast rate. The National Center for Education Statistics accounts for 21 million students being enrolled in 2011, up from 15.9 million in 2001. This raises the question: how do you pay for it?
The BND Way
More students are taking out student loans to cover the cost of their college tuition than ever before. During the 1989-1990 academic year, only 50 percent of college students in at least their fourth year of college were using them; fast-forward to the 2011-2012 school year, and 68 percent were, U.S. News reports. The Bank of North Dakota is a leader among private educational loan providers. The state agency renders student loans to those attending colleges in North Dakota and across the nation, so long as they’ve been approved, which can be verified via their website.
Private loans made up around one-fifth of all loans used by students who graduated in 2012, the Project on Student Debt reports. An education loan through BND comes with variable or fixed interest rates, depending on your enrollment status, whether you’re an undergraduate or graduate student, and which type of loan you’re pursuing.
BND offers private loans. Their private loan — known as the Dakota Education Alternative Loan (DEAL) — is for undergrads and graduates. A specialized medical version of the DEAL is available to medical school students. Credit is very important when applying for a DEAL; if you don’t have any or yours is poor, a cosigner is a must.
To be eligible for a loan through the Bank of North Dakota, students must meet the minimum requirements as follows:
- Be a legal residence of or attend school in one of the following states: North Dakota, South Dakota, Minnesota, Montana, Wyoming or Wisconsin
- Be a citizen of the US, a permanent resident, or an eligible non-citizen
- Enrollment in an approved college or university
- Satisfactory academic performance
The Need for Financial Help
While some would-be college students are fortunate enough to have hefty savings accounts — generally a courtesy of their parents — certainly not everyone has this luxury. Others might have the benefit of their employer covering their college expenses when it will aid the development of their position within a company. However, the majority of college students are 18-24 years old — 79 percent to be exact — according to Marketing Charts. That means most are jumping into their freshman year of college soon after high school graduation, if not immediately.
The Debt Collector Will Come Knocking
Federal loans give borrowers six to nine months off between graduation and the onset of repayment, depending on which loan you opt for. When it comes to private loans, you may be required to make small monthly payments on accruing interest during your enrollment period. Around six months after you graduate or drop beneath half-time status, it will be time to repay the principal balance of the money you borrowed from the Bank of North Dakota. This is something you should be thinking about during your entire college experience. Every time you borrow funds, take into account the balance you’ve already accrued, your career outlook, and your ability to repay the funds.