Federal Loans
Federal Direct Loan (Subsidized and Unsubsidized)
What is it?
A loan for undergraduate or graduate students. Annual limits range from $5,500 to $12,500 for undergraduate students and up to $20,500 for graduate students. The interest rate is lower than commercial rates, but will vary depending upon when the student first borrowed under the loan program. The subsidized version of this loan does not accrue interest as long as the student is enrolled at least half time. The 2011-12 interest rate on the subsidized loan is fixed at 3.4% for undergraduate students and 6.8% for graduate students. The unsubsidized version of this loan does accrue interest even if the student is enrolled at least half time and the student has the option to pay the interest while they are in school or defer interest payments until repayment. The interest rate on the unsubsidized loan is 6.8% fixed for the 2011-12 year for both undergraduate and graduate students.
Eligibility
A student must be enrolled at least half time in degree seeking coursework and maintain standards of academic progress. Six credits are considered half time for undergraduate students and 5 credits are considered half time for graduate students. Loans with a one semester only loan period will be pro-rated for their final term of study based on the number of credits the student is enrolled in. If a graduate student is enrolled in thesis, dissertation, or practicum/internship credits which are less than half-time, they will need to have a graduate form completed by their advisor, Dept. or Program Chair, and the Dean of the Graduate School indicating that their course work along with their research/practicum work is equivalent to at least half time. This form can be obtained at the Bison Connection. Non-degree seeking coursework will only be considered if it is pre-requisite or preparatory coursework for a graduate program. If you are enrolled in pre-requisite or preparatory coursework for graduate school, please contact Sandy Prudhomme at 701-231-7095 to discuss your eligibility.
Will I have to pay it back?
Yes. Repayment of both principal and interest will begin 6 months after graduation (or if the student drops below half-time - 6 credits for undergrads, 5 credits for grads), at a minimum of $50 per month.
What do I do after I accept my award?
If you are a new borrower of a Federal Direct loan, you'll need to sign a Master Promissory Note and complete Entrance Loan Counseling here
For more information about Federal Direct Loans, please visit the Department of Education's Website.
Federal Perkins Loan
What is it?
A fixed, low interest loan (5%) for students who are enrolled at least half time and demonstrate exceptional need. NDSU is the lender; however, loan repayment is processed by the Student Loan Service Center.
Will I have to pay it back?
Yes. Repayment of both principal and interest will begin 9 months after graduation (or if the student drops below half-time - 6 credits for undergrads, 5 credits for grads). Up to 100 percent of this loan can be canceled if the student meets certain conditions such as teaching in specific low-income school.
What do I do after I accept my award?
If you are a new borrower you will need to complete the Master Promissory Note (MPN), which is completed when you accept your Perkins Loan on Campus Connection, AND Perkins Entrance Loan Counseling (Complete AFTER you are admitted to NDSU). You may wish to review your Rights and Responsibilities.
Nursing Student Loan
What is it?
A fixed, low interest (5%) loan for students accepted into the nursing program. Annual maximum is $3,000 unless in last two years of program, (maximum is then $5,200). Aggregate limit is $17,000.
Who is eligible?
Graduate and undergraduate students accepted into the nursing program enrolled at least half time & show financial need. No deadline date.
Will I have to pay it back?
Yes. Repayment of principal and interest begins nine months after graduation or if the student drops below half-time status (6 credits).
What do I do after I accept my award?
First-time borrowers need to complete a Nursing Loan Master Promissory Note & Data Information Form - if you have been awarded the Nursing Loan these forms will be mailed to you. Subsequent loans require only a signature on original promissory note. Forms can be completed and returned to Bison Connection.
Must complete Federal Nursing Entrance Loan Counseling annually at www.mappingyourfuture.org.
You may wish to review your Rights and Responsibilities.
Federal Parent Plus Loan
What is it?
This is a loan that parents can use for their dependent undergraduate students. They may borrow up to the cost of the student’s attendance minus other financial aid. Students must be enrolled at least half-time. The U.S. Department of Education is the lender. The borrower must not have an adverse credit history.
Interest Rates & Fees
The interest rate and loan fees are higher than the Federal Unsubsidized Direct Loan. Information on current rates & fees can be found here
Repayment
Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out). If you are a parent borrower, you may contact your loan servicer to request a deferment while you or your child are enrolled at least half-time and for an additional six months after your child ceases to be enrolled at least half-time. If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.
How do I apply?
Complete a Plus Application here You will be required to “Sign In” using your name, date of birth, social security number and your FAFSA PIN number.
Federal Graduate Plus Loan
What is it?
This is a loan that Graduate/Professional students can borrow up to the cost of the student’s attendance minus other financial aid. You must be enrolled at least half-time. The U.S. Department of Education is the lender. The borrower must not have an adverse credit history
Interest Rates & Fees
The interest rate and loan fees are higher than the Federal Unsubsidized Direct Loan. Information on current rates & fees can be found here
Repayment
Your loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time. While your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.
How do I apply?
Complete a Plus Application here You will be required to “Sign In” using your name, date of birth, social security number and your FAFSA PIN number.
Helpful Hint:
We suggest that all students who are not residents of North Dakota check the availability of any grant assistance from the state they have established their residency. A list of state resource information can be found here.
