When planning to attend college, taking out a student loan is usually a must. North Dakotans and students attending North Dakota institutions have an affordable and unique option with the Bank of North Dakota (BND). Unlike many private lenders, the goal of the state-owned Bank of North Dakota’s student loan program is to aid students, not make a profit.
This comprehensive guide to Bank of ND student loans in 2025 will cover all the information you need to know, such as eligibility, loan types, benefits, application procedures, repayment alternatives, and why BND student loans could be a good choice compared to private or federal options.
Where Does the BND (Bank of North Dakota) Stand?
The only U.S. bank owned by a state has been the Bank of North Dakota since 1919. Its end objective is to improve agriculture, commerce, and industry in North Dakota. As part of its mission, BND offers student loan programs to support workforce development and education in the state.
In contrast to most commercial banks, BND is not profit-driven. As a result, it is able to provide more favorable terms and rates to borrowers. Student loans in North Dakota are among the state’s most stable ways to pay for college.
Different Kinds of Student Loans Offered by West Dakota Bank
A range of student loan alternatives are available from BND to meet the needs of both students and their parents. As of the year 2025, the following lending schemes are in effect:
1. The DEAL Student Loan (Dakota Education Alternative Loan)
Within the realm of student loans, the DEAL Loan is the principal product offered by Bank of ND. For students whose financial needs exceed those of federal student loans, this private, credit-based loan option may be a good fit.
Key Features:
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There are zero application or origination fees.
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Rates that are both fixed and subject to change
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Once the cosigner has made all payments on time for 24 months, they may be released.
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After subtracting various forms of assistance from the total cost of attendance, the loan restrictions are established.
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Available to North Dakota residents and students at North Dakota schools
II. The One Loan Deal
You may consolidate all of your student loan payments into one manageable monthly payment with the DEAL One Loan refinancing program. Loans from both the commercial sector and the public sector could be included here.
Benefits Include:
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Competitive interest rates
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A single payment due each month
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Release of cosigner after regular payments
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Could reduce the total amount needed to repay
3. A Parental Loan
Students’ parents may also apply for student loans via the Parent DEAL Loan program at the Bank of ND. Parents now have an option to help pay for their children’s college education without the burden of crippling interest rates and payback terms.
Student Loan Eligibility Requirements at the Bank of North Dakota
To qualify for a student loan from Bank of ND, you have to meet certain standards. Here are the items:
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To be considered a resident, you must either currently reside in North Dakota or be a student at an accredited North Dakota university.
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Since BND student loans are based on credit, a minimum credit score is required. A cosigner may be required for students who do not yet have a credit history.
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Student Status: You are required to be enrolled in a degree-granting institution for a minimum of half of each academic year.
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Students must maintain sufficient academic progress toward a degree to maintain eligibility.
Costs and Rates of Interest
Bank of ND student loans have competitive interest rates, which is one of the best points in their favor. Since BND is a state-run bank, its interest rates could be lower than those of most commercial lenders.
In 2025, the interest rates will be:
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Set prices: Starting at a rate of around 5.50% per year
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Varies: From 4.75 percent annual percentage rate
These rates are often lower than the national average, however they may change. Due to the absence of origination fees, prepayment penalties, and late fees, BND is among the most cost-effective lenders.
Why Bank of ND Student Loans Are the Best Option
The primary benefits of student loans offered by the Bank of North Dakota are as follows:
1. Interest Rates That Are Lower
In comparison to private lenders in the nation, BND offers some of the most reasonable rates accessible, as mentioned before.
2. Cosigners’ Release
A student is eligible to apply for a release from their cosigner status after making 24 consecutive timely payments of principal and interest.
3. Flexible Payment Plans
By providing a range of repayment lengths (10, 15, 20, or 25 years), BND allows borrowers to tailor their borrowing to their specific financial situations.
4. Provision Hailing from North Dakota
The fact that BND is a locally based organization means that borrowers get personalized service and support from people who are well-versed in the educational landscape of North Dakota.
5. Support for Students Located Inside the State
This program is created to help North Dakotans and schools keep students in the state and reduce the overall cost of higher education.
Student Loan Application Process at Bank of North Dakota
Student loans from Bank of ND are easy to apply for with only a few clicks of the mouse:
Stage One: Pre-Qualification
Use the online pre-qualification tool from BND to see whether you meet the minimal credit requirements without lowering your credit score.
The Next Stage: Submit Your Application
Please include your personal, academic, and financial details. You must also provide the information of any cosigners if you are applying with them.
Step 3: Verification and Credit Assessment
BND will check your credit and inform you of the loan’s approval or rejection. If you are approved, we will let you know the terms of the loan.
Phase 4: Attest and Sign
You may electronically sign the loan paperwork and then wait for your institution to certify the amount.
Fifth Step: Paying Out
The funds will be transferred directly to your school after certification, covering all of your educational expenses such as books, tuition, fees, and more.
Alternatives to Paying Off Debt
For customers with varying budgets, BND offers several repayment options:
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Regular Payback Period: 10–25 Years with Consistent Monthly Payments
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Graduated Repayment: Initial, lesser payments that increase over time
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Deferment and Forbearance: Options that students may explore if they are experiencing financial hardship or if they are returning to school
Even if borrowers’ loans from the Bank of North Dakota are not eligible for federal forgiveness programs like PSLF, they may still be able to get forgiveness from the state if they work in certain occupations in North Dakota, such as teaching, nursing, or STEM in rural areas.
What Sets Bank of ND’s Private and Federal Loans Apart
Federal Loans for Students
Programs: Income-driven repayment, loan forgiveness, and subsidized alternatives
Drawbacks: Possible inability to pay for attendance in full and limitations on borrowing
Private Lending
Advantage: The capacity to cover remaining costs after government aid
Downsides: Not much leeway and, often, higher interest rates
Bank of ND Loans
Benefits: Adjustable repayment terms, low interest rates, release of cosigners, and North Dakota-centric service
Drawbacks: The lack of government forgiveness and credit-based acceptance
Is Getting a Student Loan from the Bank of North Dakota the Best Choice for You?
Anyone already enrolled in or planning to enroll in a North Dakota school may take advantage of the dependable and affordably priced student loan options offered by the Bank of ND. The low interest rates, adaptable repayment schedules, and personalized support offered by BND student loans set them apart from commercial and government options.
Never take out a loan without first exploring all possible federal help, including grants, scholarships, and the Free Application for Federal Student Aid (FAFSA). But BND offers a state-centric strategy that includes savings in the long run and help when extra funding is needed.