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BISMARCK, ND–May 23, 2008: As of June 1, 2008, Bank of North Dakota (BND) will respond to revisions
to federal student loans outlined in the College Cost Reduction and Access
Act of 2007 and will responsibly make modifications to some of its student
loan programs.
“As we continuously state, BND will remain a leader in the student loan industry,” said Eric Hardmeyer, BND president. “After reviewing the federal changes, BND is making sure that the programs we have in place are fiscally responsible for the citizens of North Dakota and remain consistent with the Bank’s mission.”
Due to federal legislative requirements to fees lenders must pay to participate in the Federal Consolidation Loan program (FCL), BND has determined that it is not economically feasible to continue to participate in the FCL program at this time. Therefore, effective June 1, 2008, BND will suspend participation in the FCL program. BND will continue to service all consolidated loans made prior to this date and will advise current borrowers as to their best repayment option including consolidation with the Federal Direct Loan Program.
Again, due to federal program changes, BND will not pay fees on Federal Stafford loans for North Dakota students attending school outside of the state. Those fees will now become the responsibility of the student. For all students attending a North Dakota institution, public or private, BND will continue to pay the federal origination and default fees associated with these loans.
BND’s Dakota Education Alternative Loan (DEAL) still has the lowest rates of any alternative student loan available in North Dakota. BND will continue to pay the two percent administrative fee on DEAL loans for students who have a North Dakota connection which is any student attending a North Dakota institution or a North Dakota resident attending an out-of-state institution.
For those in need, the federal government has also increased funding limits by $2,000 on unsubsidized Stafford Loans available through the federal student loan program.
“We have been assisting families with their higher education needs for more than 40 years and will continue to do so,” says Julie Kubisiak, director of Student Loans. “The bottom line is that there is and will be funding available for students. BND will continue to offer competitive, low fee loans with great customer service.”
The nation’s only state-owned bank, BND was established in 1919 to encourage and promote agriculture, commerce and industry in North Dakota. BND is overseen by the Industrial Commission of North Dakota, consisting of Gov. John Hoeven as chairman, Attorney General Wayne Stenehjem, and Agriculture Commissioner Roger Johnson.
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