The Dakota Education Alternative Loan or DEAL is available for undergraduate and graduate students. Residents of North Dakota receive some added benefits from this loan. The DEAL offers fixed and variable interest rates. Students attending higher cost programs may receive higher borrowing limits.
Dakota Education Alternative Loan:
- Fixed interest rates ranging from 4.62% to 6.62%.
- Variable interest rates ranging from 1.78% to 3.78%.
- Minimum borrowing limit is $500.
- Maximum borrowing limit is $50,000.
Students living in the state of North Dakota receive lower fixed interest rates, about 1% less than out of state borrowers. This is the same for variable interest rates, North Dakota residents receive a 1% lower rate than out of state borrowers. The low borrowing limit of $500 makes the DEAL a very smart option for students trying to fill the gap in education costs. With a maximum borrow limit of $50,000, students can make sure their education is payed for, law, medical, business and aviation students may be eligible for a higher limit.
Dakota Education Alternative Loan benefits:
- A 0.25% rate reduction for automatic payments while in repayment.
- North Dakota residents receive no fees.
- Students are not required to pay the loan while in school.
If the borrower elects for automated payments from a checking or savings account, they will receive a 0.25% rate reduction. Residents of North Dakota will receive no fees whatsoever, out of state borrowers will have to pay a 3% loan fee. While the borrower is in school, payments are not required but highly recommended. The repayment period starts 6 months after the borrower finishes school, goes under half-time status or leaves school.
Dakota Education Alternative Loan eligibility requirements:
- The borrowers state of legal residence must be North Dakota, South Dakota, Minnesota, Wyoming or Wisconsin.
- Residents of other states will be eligible for the DEAL if the school of their choice is located in the state of North Dakota, South Dakota, Minnesota, Wyoming or Wisconsin.
- Student must complete the Free Application for Federal Student Aid (FAFSA) if they plan to attend school for at least half-time.
- Borrowers under the age of 24 will require a cosigner.
The borrower must live in the state of North Dakota, South Dakota, Minnesota, Wyoming or Wisconsin. If the borrower lives out of state, then their school of choice must be located in the state of North Dakota, South Dakota, Minnesota, Wyoming or Wisconsin. The borrower must complete the FAFSA application, it is free to apply for one and is an easy process, you can find out more about the FAFSA at http://www.fafsa.ed.gov/. If the borrower is under the age of 24, they will require a cosigner.
Items you will need during the application process:
- Pay stubs from the last 60 days, if you have a cosigner they will have to supply these.
- Rent or mortgage payment records.
- A government issued ID, state ID cards and driver licenses are acceptable.
- Proof of enrollment given by your school of choice.