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Press Releases
The Industrial Commission approved a student loan borrower benefit of a
.25% interest rate reduction on Bank of North Dakota (BND) student loans
and loans BND services on behalf of the North Dakota Student Loan Trust.
Student loans that qualify for this reduction must be paid by automatic
payment withdrawal from a checking or savings account. This borrower benefit
will take effect January 1, 2003 and be available to current and new participants
who choose to use this repayment method.
"Using the automatic payment withdrawal saves time, money, and interest
for the student loan borrower," said Gov. Hoeven. "There is also
the added benefits of convenience and assurance of timely payments."
"By choosing this payment alternative, students are assured the ease
and convenience of repaying their student loan along with peace of mind
that their payment will be on time," said Attorney General Wayne Stenehjem.
"In the end, the borrower will save money with the .25% interest rate
reduction and also be avoiding possible late fees."
"North Dakota historically leads the nation with the lowest student
loan default rate," Agriculture Commissioner Roger Johnson said. "Automatic
payment helps ensure students pay their loan on time; thereby helping Student
Loans of North Dakota, a division of BND, maintain its low default rate."
Student loan borrowers still have the option to make their payments by
writing a check. Currently, 13% of BND student loan borrowers and 9.32%
of North Dakota Student Loan Trust borrowers utilize automatic payment.
There is a total of approximately 55,000 student loan borrowers between
BND and the North Dakota Student Loan Trust.
"Bank of North Dakota continues its commitment to remain a financial
services leader in the state of North Dakota," said Eric Hardmeyer,
president of BND. "By offering this borrower benefit, we continue
our mission of providing progressive services to our customers."
Loans eligible for this borrower benefit include Stafford, Unsubsidized
Stafford, Parent Loan for Undergraduate Students (PLUS) and Dakota Education
Alternative Loan (DEAL) - the state-funded alternative loan.
As the only state-owned bank in the nation, Bank of North Dakota is overseen
by the Industrial Commission of North Dakota, consisting of Governor John
Hoeven as Chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner
Roger Johnson.
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