Just in time for the New Year, Bank of North Dakota’s (BND) state-sponsored student loan program has been enhanced to benefit graduates and parents in North Dakota. Under the new guidelines, residents can consolidate with no fees and they do not need to have a previous relationship with BND to take advantage of the DEAL Consolidation Program.

Parents with PLUS loans are now allowed to consolidate at BND as well. This includes those who have borrowed Federal PLUS loans made by the Department of Education and PLUS loans made by other financial institutions, including BND. These can be refinanced into a DEAL Consolidation Loan and receive a lower interest rate.

Interest rates were lowered for the first quarter of 2013 to 1.81% for a variable rate and 4.31% for a fixed rate. Based on the DEAL rates effective January 1, parents can reduce their interest rates by 3.59% or more without paying any type of refinance fee.

“Student loan debt is an increasing concern for our state’s residents. The DEAL is a viable option to assist with financing a college education for a number of North Dakotans,” states BND president Eric Hardmeyer.

BND’s student loan program was recognized by “Money” magazine several times during 2012 as being a low-cost alternative loan option. The new Consolidation Program options allows for a parent with $20,000 in PLUS loans to save just over $5,000 over the next ten years when consolidating to a fixed rate, a savings of $42 per month.

Hardmeyer continues, “The consolidation expansion can make a difference for many families. I encourage parents with PLUS loans, as well as graduates who are eligible for consolidation, to contact us to determine if it will benefit them.”

People who are interested in learning more about the DEAL Consolidation Loan can visit the BND website at banknd.nd.gov or call 1.800.472.2166 extension 328.5763.